REPGllT    OF   THE 


POSTMASTER  GENERAL, 


POST  OFFICE  DEPARTMENT, 
Richmond,  Va.,  Nov.  27tli,  ISGl. 

Sir; 

I  have  the  honor  to  submit  the  following  statement  of  tli. 
condition  of  the  business  of  the  Post  Office  Department. 

On  the  29th  day  of  April  last,  I  had  the  honor  of  sub- 
mitting to  you  a  report  of  the  condition  and  progress  of 
organization  of  the  Post  Office  Department,  and-of'^'juesent- 
ing  a  plan  for  the  organization  of  its  sevtrail  Bureaiis.  and 
of  the  office  of  Auditor  of  the  Treasury  for  the  Post  Office 
Department,  and  of  suggesting  such  changes  and  modifica- 
tions in  the  laws  relating  to  the  postal  service  as  our  new 
condition  required,  and  of  asking  for  authority  to  assume 
the  entire  control  of  the  postal  service  in  the  Confederate 
States. 

Under  the  provisions  of  the  first  section  of  the  act  of 
Congress,  of  May  9th,  1861,  '*To  amend  An  Act,  vesting 
certain  powers  in  the  Postmaster  General,  approved  March 
1 .5th,  186 1 ,"  the  requisite  authority  Avas  given  to  him  to  issue 
his  proclamation,  fixftig  a  day  on  which  he  would  assume  the 
control  of  the  postal  service.  Pursuant  to  that  authority 
the  following  proclamation  was  issued  on  the  13th  day  o*^f 
May,  fixing  the  1st  day  of  June,  for  the  commencement  o^ 
the  service,  to  wit : 


Whereas',  By  the  provisions  of  an  act,  approved  Marcli 
loth,  18G1,  aii(i  amended  by  the  first  section  of  an  Act, 
approved  May  9th,  1861,  the  Postmaster  General  "  is  au- 
thorized, on  ai\d  after  a  day  to  be  named  by  him  for  that 
purpose,  to  take  the  entire  charge  and  direction  of  the 
postal  service  in  the  Confederate  States,"  and  all  conversance 
of  mails,  within  their  limits,  from  and  after  such  day,  except 
by  authority  of  tlic  Postmaster  General,  is  thereby 
prohibited : 

Now,  therefore,  I,  John  II.  Keacan,  Postmaster  General 
of  the  Confederate  States  of  America,  do  issue  this  my  proc- 
lamation, notifying  all  Postmasters,  Contractors  and  Special 
and  Route  Agents,  in  the  service  of  the  Post  Office  Depart- 
ment and  engaged  in  the  transmission  and  delivery  of  the 
mails,  or  otherAvise  in  any  manner  connected  with  the  ser- 
vice, within  the  limits  of  the  Confederate  States  of  America, 
that  on  and  after  the  1st  day  of  June  next,  I  shall  assume 
the  entire  control  and  direction  of  the  postal  service  therein  : 
And  I  hereby  direct  all  Postmasters,  Route  Agents  and 
Special  Agents,  within  these  States,  and  now  acting  under 
tlic  authority  and  direction  of  the  Postmaster  General  of 
the  United  States,  to  continue  in  the  discharge  of  their  res- 
pective duties,  under  the  authority  vested  in  me  by  the 
Congress  of  the  Confederate  States,  in  strict  conformity  with 
such  existing  laws  and  regulations  as  are  not  inconsistent 
Avith  the  laws  and  constitution  of  the  Confederate  States  of 
America;^  and  such  further  instructions  as  may,  hereafter,  be 
issued  by  my  direction  :  And  the  said  Postmasters,  Route 
Ao-ents  and  Special  Agents  are  also  required  to  forward  to 
this  Department,  without  delay,  their  names,  Avith  the  names 
of  the  ofiices  of  which  they  are  Postmasters,  (giving  the 
State  and  County),  to  be  directed  to  the  ''  Chief  of  Appoint- 
ment Bureau,  Post  Office  Department,  Montgomery,  Ala- 
bama," in  order  that  ncAV  commissions  may  be  issued  under 
the  authority  of  this  Government;  and  all  Postmasters  are 
hereby  required  to  render  to  the  .  Post  Office  Department  at 
Washington,  D.  C,  their  final  accounts  and  their  vouchers 
for  postal  receipts  and  expenditures,  up  to  the  31st  day  of 
this  month,  taking  care  to  forward, Vitli  said  accounts,  all 
postao-e  stamps  and  stamped  envelopes,  remaining  on  hand, 
belono-ing  to  the  Post  Office  Department  of  tJie  United 
.  States,  in  order  that  they  may  receive  the  proper  credits 
therefor,  in  the  adjustment  of  their  accounts  ,  and  they  are 
i'rther  required  to  retain  in  their  possession,  to  meet  the 


3^ 

ordiers  of  the  Postmaster  General  of  tiie  United  States,  fer- 
tile payment  of  mail  service,  within  the  Confederate  States, 
all  revenue  which  shall  have  accrued  from  the  postal  service 
prior  to  the  said  1st  day  of  June  next. 

All  contractors,  mail  messengers  and  special  contractors 
for  conveying  the  mails  within  the  Confederate  States,  under 
existing  contracts  with  the  Government  of  the  United  States, 
are  hereby  autliorized  to  continue  to  perform  such  service 
under  my  direction,  from  and  after  the  day  last  above  named, 
subject  to  such  modifications  and  changes  as  may  be  found 
necessary,  under  the  poAvers  vested  in  the  Postmaster  Gen- 
eral by  the  terms  of  said  contracts  and  the  provisions  of  the 
second  section  of  an  Act  approved  May  9th,  1861,  conform- 
able thereto.  And  the  said  contractors,  special  contractors 
and  mail  messengers  are  required  to  forward,  without  delay, 
the  number  of  their  route  or  routes,  the  nature  of  the  ser- 
vice thereon,  the  schedules  of  arrivals  and  departures,  the 
names  of  the  offices  supplied  and  the  amount  of  annual  com- 
pensation for  present  service,  together  with  their  address, 
directed  to  the  "  Chief  of  the  Contract  Bureau,  Post  Office 
Department,  Montgomery,  Alabama." 

Until  a  postal  treaty  sliall  be  made  with  tlie  Government 
of  the  United  States  for  the  exchange  of  mails  between  that 
Government  and  the  Government  of  this  Confederacy,  Post- 
masters will  not  be  authorized  to  collect  ''  United  States 
postage  on  mail  matter  sent  to,  or  received  from  those  States  ; 
and  until  supplies  of  postage  stamps  and  stamped  envelopes 
are  procured  for  the  prepayment  of  postage  within  the  Con- 
federate States,"  all  postages  must  be  paid  in  money,  under 
the  provisions  of  the  first  section  of  an  Act  approved  }Jarch 
1st,  18G1. 

(liven  under  my  liand  and  the  seal  of  the  Post  OfSce  De- 
/^^^      partment  of  the    Confederate    States   of  America, 

<  SEAL  i  at  ^lontgomery,  Alabama,  the    13th   day  of  May, 

<  ^^^  ^  in  the  year  1861. 

JOHN  IT.  REAGAN, 

Postmaster  General. 

I  also  append  a  copy  of  a  proclamation,  dated  3d  day  of 
July,  1861,  similar  to  the  above,  which  relates  to  the  State 
of  Tennessee,  and  vdiich  is  marked  exhibit  A. 

The  first  day  of  June  was  adopted  in  the  proclamation  as 
being  the  earliest  period  of  time  at  which  it  was  suppose^ 


sufficient  notice  could  be  given  to  postmasters,  contractors 
and  others  engaged  in  the  service,  of  the  change;  so  as  to 
•secure  uniformity  in  their  official  action. 

It  may  be  proper  to  state,  in  this  connection,  that,  subse- 
quent to  the  issuing  of  the  above  proclamation,  the  Post- 
master General  of  the  United  States  issued  his  proclamation 
and  sent  orders  to  the  contractors  discontinuing  the  postal 
service  in  the  Confederate  States,  under  the  authority  of  that 
Government,  from  the  1st  of  June,  1861 ,  that  being  the  date 
on  which  our  Government  took  charge  of  that  branch  of  the 
public  service. 

At  the  time  of  submitting  my  former  report,  there  were 
but  seven  States  in  the  Confederate  States.  The  books 
necessary  for  conducting  the  business  of  the  Department  for 
these  States,  were  then  completed.  Subsequently  the  States 
of  Virginia,  North  Carolina,  Arkansas  and  Tennessee  were 
added  to  the  Confederate  States,  and  the  additional  books 
for  these  States,  were  prepared  in  time  to  proceed,  w^ithout 
interruption  to  the  service,  though  they  embraced  about  the 
same  number  of  Post  Offices  and  contracts  that  were  em- 
braced in  the  other  seven  States. 

The  progress  of  the  organization  of  the  Department,  and 
putting  it  into  successful  operation,  was  delayed  several 
weeks  by  the  removal  of  the  scat  of  Government  and  the 
delay  in  preparing  a  suitable  building  in  this  city. 

RECEIPTS  AND  EXPENDITURES. 

The  total  cost  of  the  mail  service  in  the  eleven 
States,  which  now  compose  the  Confederate  States,  for 
the  fiscal  year,  ending  June  30th,  1860,  under  the  Go- 
vernment of  the  United  States,  was  four  million,  two  hun- 
dred and  ninety-six  thousand,  two  hundi'cd  and  forty-six 
dollars  and  seventy-eight  cents,  ($4,296,246  78).  The 
total  receipts  from  the  postal  service  for  the  same  year  were 
one  million,  five  hundred  and  seventeen  thousand,  five  hun- 
dred and  forty  dollars  and  fifty-five  cents,  ($1,517,540  55). 
The  excess  of  expenditures  over. receipts,  for  the  same  time, 
was  two  million,  seven  hundred  and  seventy-eight  thousand, 
seven  hundred  and  six  dollars  and  twenty-three  cents, 
($3,778,706  23). 

I  herewith  submit  a  tabular  exhibit  C  marked  (B)  giving 
in  detail,  the  receipts  and  expenditures  for  that  year. 


The  report  of  the  Auditor  of  the  Treasury  for  the  Post 
Office  Department,  of  the  receipts  and  expenditures  for  the 
fractional  quarter,  of  one  month,  ending  the  30th,  of  June 
hist,  (the  returns  for  the  subsequent  quarter,  ending  Sep- 
tember 30th  not  being  sufficiently  complete  to  enable  him  to 
report  for  that  quarter,)  sliow  a  total  of  expenditure  of  two 
hundred  thousand,  nine  hundred  and  thirty-seven  dollars 
and  ninety-seven  cents,  (§200,937  97),  and  a  total  of  re- 
ceipts of  ninety-two  thousand,  three  hundred  and  eighty- 
seven  dollars  and  sixty-seven  cents,  ($92,3B7  67) ;  leaving 
an  excess  of  expenditures  over  receipts  of  one  hundred  and 
eight  thousand,  five  hundred  and  fifty-three  dollars  and 
thirty  cents,  ($108,553  30). 

These  figures,  for  the  month  of  June,  are  made  up  of  so 
meagre  and  imperfect  material,  as  shown  by  the  report  of 
the  Auditor,  on  account  of  the  absence  of  returns  from  a 
portion  of  the  Postmasters,  and  from  the  fact  that  the  service 
of  many  contractors  has  not  yet  been  recognized  and  remains 
unpaid,  for  reasons  which  will  appear  in  subsequent  portions 
of  this  report,  as  to  give  no  reliable  data  for  determining, 
or  estimating  the  receipts  and  expenditures  of  the  Depart- 
ment for  the  remainder  of  the  current  fiscal  year. 

Subsequent  portions  of  this  report,  together  with  the  re- 
port of  the  Auditor,  Avill  develop  the  causes  which  have 
placed  it  out  of  his  power  to  make  a  more  perfect  exhibit  of 
the  receipts  and  expenditures  for  that  month. 

By  an  Act  of  Congress  "relative  to  Telegraph  lines  in 
the  Confederate  States,"  approved  the  11th  of  May  last,  the 
President  was  authorized,  during  the  existing  war,  to  take 
such  control  of  the  Telegraph  lines  of  the  Confederate 
States,  and  of  the  offices  connected  therewith,  as  will  enable 
him  effectually  to  supervise  the  communications  passing 
throuiidi  the  same,  to  the  end  that  a  knowledf2:e  of  our  mili- 
tar}^  operations  shall  not  be  improperly  communicated,  or 
dispatches  sent,  calculated  to  injure  the  cause  of  the  Con- 
federate States,  or  give  aid  and  comfort  to  the  enemy,  and 
to  appoint  telegraph  operators,  build  telegraph  lines,  when, 
necessary  for  the  prosecution  of  the  war,  &c. 

The  execution  of  this  law  was  confided,  by  the  President, 
to  the  Postmaster  General.  And,  in  an  '-Act  to  provide  for 
certain  deficiencies  in  the  appropriations  for  the  Post  Office 
Department  for  the  year  ending  February  18th,  1862,"  the 
sum  of  thirty  thousand  dollars  was  appropriated  to  carry  into 
effect  the  provisions  of  the  above  named   act  of  May  11th.. 


6 

It  is  sliown  by  the  report  of  the  Auditor,  that  the  sum  of 
fifteen  thousand  one  liundred  and  thirty-six  dollars  and 
seventy-seven  cents,  ($15,136  77)  of  said  appropriation  has 
been  expended,  leaving  an  unexpended  balance  of  fourteen 
thousand  eight  hundred  and  sixty-three  dollars  and  thirty- 
three  cents  ($14,863  33.) 

Eip;ht  lines  cf  teleii-rai)h  have  been  built  of  the  a^-Li-reirate 
length  of  two  liundred  and  seventeen  miles,  and  supplied 
with  batteries,  at  an  aggregate  cost  of  four  thousand  three 
hundred  and  sixty-five  dollars  and  thirty -two  cents, 
($4,365  32.)  Ten  and  a  half  miles  of  insulated  copper 
wire,  with  batteries,  sounders,  kc,  and  three  vcliicles,  with 
reels  for  extending  and  taking  up  the  wire,  have  been  made 
and  sent  to  the  army,  for  field  operations,  at  a  cost  of  four 
.thousand  seven  hundred  and  sixty-three  dollars  and  eighty- 
six  cents  (4,763  86). 

Twenty  telegraph  operators  and  watchmen  have  been 
employed  in  operating,  repairing  and  taking  care  of  these 
lines,  at  a  cost  of  one  thousand  six  hundred  and  ninety-six 
dollars  and  twent3^-three  cents,  ($1,696  23),  of  which  sum 
one  thousand  five  hundred  and  thirteen  dollars  and  seventy 
cents  ($1,513  70)  has  been  paid. 

A  contract  has  been  made  with  the  "  Texas  Telegraph 
Compan}^"  by  which  an  advance  of  fifteen  thousand  dollars 
is  to  be  made  to  that  company,  for  building  and  operating  a 
line  of  telegraph  and  sending  Government  dispatches  from 
New  Orleans,  Louisiana,  to  Houston,  Texas,  a  distance  of 
three  hundred  and  eighty  miles  ;  and  four  thousand  three  hun- 
dred and  thirteen  dollars  and  fifty  cents  ($4,313  50)  has 
already  been  paid  over  to  the  Company,  under  that  contract. 
This  line  is  to  be  completed  by  the  tenth  of  December  next. 

A  contract  has  been  entered  into  with  the  "  Arkansas 
State  Telegraph  Company,"  by  which  an  advance  of  eight 
thousand  dollars  is  to  be  made  to  that  Company,  for  building 
and  operating  a  line  of  telegraph  and  conveying  Govern- 
ment dispatches  between  Little  llock  and  Fort  Smith,  Ar- 
kansas, a  distance  of  one  hundred  and  ninety  miles. 

Estimates  will  be  submitted  for  an  additional  appropria- 
tion for  telegraph  purposes. 

By  an  act  of  Congress,  approved  the  30th  of  August  last, 
the  Postmaster  General  is  charged  with  the  duty  of  collect- 
ing the  outstanding  balances  in  the  hands  of  late  and  present 
postmasters,  which  had  not  been  paid  over  to  the  Post  Office 
Department  of  the   United  States  prior  to  the   first  day  of 


7 

June  last.  He  is  also  charged  by  said  act  Avitli  the  duty  of 
iiscertaining  the  amounts  "  due  the  persons  who  are  citizens 
of  the  Confederate  States  of  America,  and  who  may  have 
rendered  postal  serAice  in  any  of  the  States  of  this  Confede- 
racy, under  contracts  or  appointments  made  by  the  United 
States  Government  before  the  Confederate  States  Govern- 
ment took  charge  of  such  service." 

In  obedience  to  the  requirements  of  said  ret,  on  the  18th 
da}'  of  September  last,  I  issued  a  proclamation,  of  which 
the  following  is  ;i  copy : 

''  Whereas,  by  the  provisions  of  the  third  section  of  an 
tict  of  Congress,  approved  August  30th,  1861,  entitled  "an 
act  to  collect  for  distribution,  the  moneys  remaining  in  the 
several  post  offices  of  the  Confederate  States,  at  the  time  the 
postal  service  was  taken  in  charge  by  said  Government,  it  is 
made  the  duty  of  the  Postmaster  General  to  make  procla- 
mation that  all  persons  who  are  citizens  of  the  Confederate 
States  of  America,  and  who  may  have  rendered  postal  ser- 
vice in  any  of  the  States  of  this  Confederacy,  under  con- 
tracts or  appointments  made  by  the  United  States  Govern- 
ment before  the  Confederate  States  Government  took  charge 
of  such  service,  shall  present  their  claims  to  his  Depart- 
ment, verified  and  established  according  to  such  rules  as  he 
shall  prescribe,  by  a  time  therein  to  be  set  forth  not  less  than 
six  months,  and  requiring  the  cbiimant  to  state,  under  oath, 
how  much  has  been  paid  and  the  date  of  such  payments,  on 
account  of  the  contract  or  appointment  under  which  said 
•claim  occurred  and  what  fund  or  provision  has  been  set  apart 
or  made  for  the  further  payment  of  tJie  whole  or  any  por- 
tion of  the  balance  of  such  claim,  by  the  Government  of  the 
United  States,  or  of  any  of  the  States;  and  they  shall  also  state, 
•on  oath,  wdiether  they  performed  fully  the  service  accord- 
ing to  their  contracts  or  appointments  during  the  time  for 
which  they  claim  pay,  and,  if  not,  what  partial  service  they 
did  perform,  and  what  deductions  have  been  made  from  their 
pay,  so  far  as  they  know,  on  account  of  any  failure  or  par- 
tial failure  to  perform  such  service. 

Now,  therefore,  I,  John  H.  Reagan,  Postmaster  General 
of  the  Confederate  States  of  America,  do  issue  this,  my  pro- 
clamation, requiring  all  persons  having  claims  for  postal  ser- 
vice, under  the  foregoing  provisions  of  the  3rd  section  of  the 
above  named  act,  to  present  said  claims  to  the  Auditor  of  the 
Treasury  for  the  Post  Office  Department  for  examination,  on 
or  before,  the  13th  day  of  March,  1862,  in  order  that  I  may 


8 

make  a  report  to  Congress  of  the  amount  thereof,  as  required 
bj  law. 

Blank  forms,  for  presenting  and  verifying  the  claims  will 
be  furnished  on  application  to  the  Auditor  of  the  Treasury 
for  the  Post  Office  Department. 

And  I  hereby  require  all  persons  who  have  heretofore 
collected  moneys  as  Postmasters,  in  the  States  now  compo- 
sing the  Confederate  States,  and  which  they  had  not  paid 
over  at  the  time  the  Confederate  States  took  charge  of  the 
postal  service,  to  make  out,  under  oath,  and  send  to  the  Au- 
ditor of  the  Treasury  for  the  Post  Office  Department  on,  or 
before  the  13th  day  of  October  next,  a  general  or  ledger  ac- 
count, with  the  United  States,  for  the  service  of  the  Post 
Office  Department,  up  to  the  time  the  control  of  the  postal 
service  was  assumed  by  the  Confederate  States,  in  accord- 
ance with  the  general  regulations  of  the  Post  Office  Depart- 
ment, issued  May  loth,  1859,  page  106,  exhibiting  the 
balances  in  the  possession  of  such  postmasters. 

Given  under  my  hand  and  seal  of  the  Post  Office  Depart- 
ment of  the  Confederate  States  of  America,  at  Rich- 
mond, Va.,  the  18th  day  of  September,  in  the  year 
1861. 

JOHN  H.  REAGAN 

Fost master  General. 

I  also  gave  to  the  proper  accounting  officer  of  the  Depart- 
ment, the  Auditor  of  the  Treasur}^  for  the  Post  Office  De- 
partment, the  proper  forms  and  instructions  for  the  collection 
of  said  outstanding  balances  and  for  the  verification  and 
establishment  of  said  claims  against  the  fund  to  be  collected. 
And,  as  shown  by  his  report,  he  is  proceeding  in  the  dis- 
charge of  that  duty. 

It  will  be  seen  by  reference  to  the  report  of  the  Auditor 
that  he  asks  for  additional  clerical  force.  As  the  adjust- 
ment of  the  accounts  of  the  Post  Office  Department,  and  the 
prompt  payment  of  contractors  engaged  in  conveying  the 
mails,  which  is  essential  to  the  success  of  the  service  and  to 
the  maintenance  of  the  credit  of  the  Department,  depends  on 
the  sufficiency  of  the  clerical  force  of  the  Auditor's  office,  I 
feel  called  on  to  submit  some  suggestions  in  behalf  of  its 
increase. 

When,  on  the  29th  of  April  last,  I  submitted  a  plan  for 
the  organization  of  the  Auditor's  office,  and  suggested  the 
necessity  of  a  force  of  thirty  clerks,  for  the  performance  of 


the  duties  of  that- office,  it  will  be  remembered  that  there 
were  but  seven  States  in  our  Government,  and  that  there 
were,  at  that  time,  but  four  thousand  one  hundred  and  sixty- 
one  postmasters  and  one  thousand,  three  hundred  and  thirty- 
four  contractors  whose  accounts  were  to  be  audited.  The 
accounts  of  each  of  these  postmasters  and  contractors  are 
required  to  be  audited  quarterly,  making  an  aggregate  of 
twenty- one  thousand  nine  hundred  and  eighty  accounts  to 
be  audited  annually. 

Now  there  are  eleven  States  and  eight  thousand  four  hun- 
dred and  eleven  postmasters,  and  two  thousand  five  hundred 
and  seventy-nine  contractors,  whose  accounts  are  to  be 
audited,  making  forty-three  thousand  nine  hundred  and 
sixty  accounts  to  be  audited  annually. 

Under  the  act  of  August  30th,  1831,  above  referred  to, 
very  heavy  additional  labors  are  devolved  on  the  Auditor  in 
the  collection  of  out-standing  balances  and  in  the  ascertain- 
ment of  amounts  due  to  contractors  and  others,  which  will 
involve  the  necessity  of  auditing  some  ten  thousand  addi- 
tional accounts,  besides  a  very  extensive  and  troublesome 
correspondence,  and  all  to  be  performed  ])y  the  13th  day  of 
March  next. 

In  addition  to  this,  he  is  required  to  audit  the  accounts 
which  may  be  made  under  the  act  of  May  11th,  in  relation 
to  telegraph  lines,  &c. 

From  these  facts  it  will  be  seen  that  the  business  of  that 
office  is  now  fully  double  what  it  Avas  when  the  present 
clerical  force  was  allowed  by  Congress.  And  a  very  con- 
siderable increase  of  that  force  is  indispensable  to  its  suc- 
cessful management. 

It  is  proper  for  me  to  say  that  the  whole  number  of  clerks 
authorized  by  Congress  for  that  office  has  only  recently  been 
appointed,  and  that  the  business  of  the  Postoffice  Depart- 
ment has  been  delayed  for  the  vrant  of  this  force. 

The  report  of  the  Auditor  is  hereto  annexed  marked  ex- 
hibit C,  and  your  attention  is  respectfully  called  to  the 
statements  and  recommendations  it  contains. 

CONTRACT   BUREAU. 

There  are  in  the  Confederate  States  2,579  post-roads  es- 
tablished by  law.  Of  this  number  372  were  not  let  to  con- 
tract by  the  United  States  for  reasons  shown  by  the  official 
reports  of  the  United  States  Post  Office  Department,  which 
were  the  extravagance  of  the  bids  and  failure  of  bidders  to 


J 


10 

execute  contracts,  leaving  2,207  post-roads  under  contract 
on  tlie  1st  of  June,  ISGl.  Of  this  number  41o  have  been 
aban<loned  bj  the  contractors,  and  no  response  has  been  re- 
ceived from  contractors  on  519  of  the  remaining  routes, 
notwithstanding  the  urgent  efforts  made  by  proclamation  of 
the  Postmaster  General,  and  letters  from  this  bureau  to  ob- 
tain such  information  as  v»  ould  enable  the  Department  to 
know  whetlier  tlie  old  contractors  were  still  performing  ser- 
vice, or  were  willing  to  continue  the  service,  under  the 
Confederate  Government,  and  execute  new  contracts  for  its 
faithful  performance. 

On  376  routes  additional  information  is  required  by  the 
Department  from  contractors  and  postmasters,  to  enable  it 
to  prepare  new  contracts  for  execution.  The  greater  num- 
ber of  these  routes  appear,  by  the  information  already  re- 
ceived, to  have  been  either  transferred  by  the  parties  to 
Avhom  the  contracts  were  originally  awarded,  to  persons  un- 
known to  the  Department,  save  by  the  fact  that  they  claim 
to  be  the  contractors,  or  the  routes  have  been  materially 
changed. 

In  these  cases  the  original  evidence  of  assio-nmcnt  and 
orders  making  changes  are   required   by  tiie  Department  to 


on  68,  routes  has  been  discontinued  b}^  the  Department  as 
unnecessary,  and  1 1  steamship  routes  have  been  discon- 
tinued, by  reason  of  the  blockade,  making  a  total  of  79 
routes  on  which  the  service  has  been  discontinued.  The 
amount  saved  to  the  Department  annually  b}^  these  discon- 
tinminces  is  $412,783  97. 

Tlie  service  on  74  routes  has  l)een  curtailed,  and  the  an- 
nual expenses  thereof  reduced  $219,206  71,  including  a 
reduction  of  $115,000  on  so  much  of  the  overland  route 
from  San  Antonio,  Texas,  to  San  Diego,  California,  as  lies 
between  San  Antonio  and  El  Paso,  Texas ;  making  a  total 
annual  saving  of  $631,990  68. 

Contracts  have  been  prepared,  in  duplicate,  and  sent  in 
letters  of  instruction  to  postmasters  for  execution,  by  the 
contractors,  on  1,372  routes.  Of  this  number  833  have 
been  returned  properly  executed  and  recorded  in  this  De- 
partment and  filed  in  the  Auditor's  office.  It  is  believed 
that  the  residue  will  be  properly  executed  in  a  short  time. 

A  tabular  statement,  exhibiting  in  detail  the  foregoing 
information,  is  hereto  annexed,  marked  exhibit  D. 

It  appears,  by  the  foregoing  statement,  that  upon  a  large 


11 

number  of  rout  js  contracts  have  not  been  obtained  by  the 
Department,  notwithstanding  the  most  diligent  efforts  have 
been  made  to  secure  their  execution. 

Among  the  many  difficulties  Avhich  tlie  Department  has 
encountered  in  its  efforts  to  secure  efficient  postal  service, 
the  following  most  prominent  causes  may  be  enumerated, 
viz :  In  conseijuence  of  the  failure  of  the  Congress  of  the 
United  States  to  make  the  usual  appropriations  for  the  pos- 
tal service  for  the  year  ending  June  3i)th,  1860,  and  for  the 
deficiency  in  the  appropriations  and  revenues  of  the  preced- 
ing year,  many  contractors  were  unpaid  for  a  period  of  more 
than  six  months,  and  had  completely  exhausted  their  credit 
for  obtaining  supplies  necessary  for  their  stock  and  in  pro- 
curing coaches  and  drivers,  and  were  compelled  either  to 
abandon  their  routes  or  perform  imperfect  and  partial  ser- 
vice thereon.  During  the  period  which  intervened  between 
the  secession  of  the  several  States  and  the  assumption  by 
the  Confederate  States  Government  of  its  postal  affairs,  the 
-entire  service  became  demoralized  and  partially  broken  up, 
lis  contractors  found  no  certain  provision  made  for  the  pay- 
ment of  their  services  during  that  period ;  and  there  was, 
to  a  great  extent,  an  absence  of  a  sense  of  responsibility  in 
the  performance 'of  the  duties  of  both  contractors  and  post- 
masters, as  thc}^  did  not  recognize  the  authority  of  the 
United  States  Government,  and  the  Confederate  Government 
had  no  control  of  the  service  prior  to  the  first  of  June. 

After  the  issue  of  my  proclamation  proposing  to  continue 
•all  contractors  in  the  service  of  the  Confederate  Govern- 
ment, many  of  them  seemed  to  be  anxious  to  ]3e  regarded  as 
contractors,  without  executing  new  contracts  with  the  Con- 
federate Government,  reserving  to  themselves  the  right  to 
abandon  the  service  at  their  pleasure,  but  demanding  pay, 
and,  in  numerous  instances,  increased  pay  for  the  service 
performed. 

Others  claimed  the  right  to  perform  inferior  service  instead 
of  the  higher  grade  of  service  which  they  had  contracted 
with  the  United  States  Government  to  perform,  and  demand- 
ed the  pay  due  for  the  higher  grade  of  service.  The  travel 
over  many  of  the  stage  routes  was  greatly  interfered  with 
by  the  condition  of  the  countr}^,  and  these  routes  ceased  to 
be  profitable,  and  many  contractors  availed  themselves  of 
the  opportunity  presented,  by  the  fact  that  without  exeoiit- 
ing  new  contracts  they  were  free  from  liability,  and  aban- 
doned their   routes  entirely  ;    and  as  these  routes  generally 


n 

constituted  trunk  lines,  ^vliich  supplied  the  inferior  routes 
throughout  tlie  country  with  their  mail  matter,  of  course 
great  and  Avide-spread  embarrassment  was  produced  and  con- 
tinued until  new  service  could  be  procured,  by  advertising 
or  by  special  contracts.  In  some  cases  advertisements  for 
proposals  have  met  with  no  response,  or,  if  responded  to,  it 
was  by  bids  so  extravagant  and  unreasonable  as  to  preclude 
their  acceptance.  In  numerous  instances  contractors,  in- 
fluenced by  a  spirit  of  patriotic  devotion  to  the  common 
cause  connected  themselves  with  the  army  (although  by  law 
exempt  from  military  service,  where  tliey  discharged  their 
duties  in  j^erson,)  and  left  the  performance  of  their  service 
as  carriers  of  the  mails  in  the  hands  of  careless  or  incom- 
petent agents,  and,  even  if  the  service  is  continued,  great 
delay  is  experienced  in  obtaining  contracts  to  ensure  its 
faithful  performance,  by  reason  of  their  absence. 

In  numerous  instances  the  Department  has  not  been  ap- 
prized of  the  abandonment  of  routes,  until  long  after  it  had 
occurred,  and  then  not  by  its  proper  agents,  but  by  some 
citizen  or  newspaper  communicating  the  information  to  the 
Department ;  and  when  investigation  has  been  had,  it  has 
frequently  been  found  that  the  contractors  and  postmasters 
were  in  the  army. 

In  some  cases  of  abandonment  of  service,  the  postmaster 
and  citizens  have  obtained  temporary  service  by  the  patriot- 
ic use  of  their  private  means,  without  notice  to  the  Depart- 
ment, and  the  service,  not  being  subject  to  its  control,  is  ir- 
regular and  imperfect. 

But  the  failures  and  delays  in  the  receipt  of  letters  and 
newspapers  are  not  always  justly  chargeable  to  delinquencies 
of  the  Department  and  its  agents.  It  is  tlie  practice  of  the 
most  extensive  newspaper  offices,  in  the  large  cities,  not 
only  to  direct  their  packages  to  the  offices  of  delivery,  but 
also  to  bag  them  in  pouches  supplied  by  the  Department, 
and  label  the  bags  to  the  several  route  agents  upon  the  dif- 
ferent railroads. 

A  report  recently  made  to  the  Department  by  two  of  its 
special  agents  who  had  been  directed  to  visit  several  of  the 
most  important  newspaper  offices  and  obtain  the  consent  of 
the  editors  to  examine  and  revise  their  "  mailing  books," 
states  that  these  books  were  very  imperfect  and  in  conse- 
quence thereof  sacks  of  newspapers  were  frequently  sent  to 
a  route  agent  on  one  line  of  railroad  which  should  have  been 
sent  to  another  agent  on  a  road  traversing  an  entirely  dif- 


13 

ferent  section  of  country,  but  connecting  at  some  remote 
point ;  thus  producing  great  delay  and  irregularit}^  in  their 
delivery.  Route  agents  have  frequently  reported  to  the  De- 
partment that  the  papers  in  these  sacks  are,  in  numerous  in- 
stances, so  illegibly  directed  that  it  is  impossible  to  assort 
and  deliver  them,  and  in  others  they  are  entirely  without 
direction. 

In  regard  to  letters  many  of  them  fail  to  reach  their  des- 
tination in  consequence  of  misdirection  or  illegible  and 
careless  direction  ;  and  a  vast  number  of  letters,  addressed 
to  persons  in  the  army,  are  not  delivered  because  the  writers 
thereof  fail  to  state,  in  the  direction,  the  name  of  the  com- 
pany and  regiment  to  which  the  party  addressed  belongs  ; 
and,  in  the  various  and  rapid  changes  of  companies  and 
regiments  from  one  point  to  another,  there  being  nothing  in 
the  superscription  to  aid  the  postmaster  in  determining  to 
what  post  office  the  letters  should  be  forwarded,  he  is  obliged 
to  retain  them  the  usual  period  and  then  send  them  to  the 
**dcad  letter"  office. 

Other  prolific  sources  of  mail  irregulaiuty  are  presented 
in  connection  with  the 

RAILROxVD  SERVICE. 

In  view  of  the  necessity  of  securing  a  reduction  of  the 
cost  of  the  postal  service,  and  in  view  of  the  fact  that  tjie 
transportation  of  the  mails,  on  the  railroads  alone,  for  the 
last  year,  cost  the  sum  of  $1,022,437,  whilst  the  whole  re- 
ceipts from  the  postal  service  were  but  $1,517,540  55^  in 
April  last,  I  called  a  convention  of  the  railroad  Presidents, 
to  meet  at  the  city  of  Montgomery,  for  the  purpose  of  seeing 
what  reduction  in  the  cost  of  this  service  could  be  made. 

Most  of  the  railroad  companies  in  the  then  limits  of  the 
Confederate  States,  and  some  of  those  in  Tennessee  and 
North  Carolina,  not  then  in  the  Confederacy,  were  repre- 
sented in  that  convention.  The  convention  agreed  to  a  class- 
ification of  the  railroads  into  three  classes,  and  that  the 
maximum  rate  of  compensation  for  those  of  the  first  class 
should  be  one  hundred  and  fifty  dollars  per  mile,  that  of  the 
second  class  one  hundred  dollars  per  mile,  and  that  of  the 
third  class  fifty  dollars  per  mile  ;  with  twenty-five  per  cent, 
to  be  added  when  one  half  of  the  service  should  be  performed 
in  the  night.  And  the  convention  adopted  a  resolution  de- 
clining, under  future  contracts,  to  deliver  the  mails  at  the 
^post  offices. 


14 

The  adoption  of  the  fore<ioing  resolution  has  devolved  on 
the  Popartment  much  trouhle  and  expense  ^vhich  has  here- 
tofore been  borne  b}^  the  railroad  contractors,  by  increasing 
the  number  of  contractors  through  ^vhosc  hands  the  mails 
are  to  pass,  and  dividing  the  responsibility  for  their  safe 
delivery^  by  the  addition  of  a  number  of  mail  messengers, 
under  separate  contracts  for  each  railroad.  And  the  addi- 
tional expense  of  the  messenger  service  counterbalances,  in 
a  great  degree,  the  redi^ction  of  the  rates  of  mail  pay  allowed 
to  the  railroads  under  the  recent  act  of  Congress. 

The  Congress,  in  May,  passed  an  act  establishing  the 
classification  and  rate  of  compensation  of  railroads  as  agreed 
on  by  the  convention  (The  maximum  rate  of  compensa- 
tion to  railroads  before  this  time  was  $300  per  mile  per 
annum.)  It  devolved  upon  the  Postmaster  General  to  deter- 
mine the  class  to  which  each  railroad  should  be  assigned 
nnder  the  rules  of  classification  adopted  by  the  Railroad 
Convention  and  the  Congress,  and  to  assign  the  appropriate 
compensation  to  each  ^vithin  the  maximum  limit  of  its  cb^ss, 
and  to  enter  into  contracts  with  the  several  companies  for 
the  performance  of  the  service.  The  railroads  have  been 
classified,  the  rate  of  compensation  assigned  them,  and  con- 
tracts sent  out  to  the  several  companies  for  execution. 

There  are  ninety-one  railroads  and  branch  roads  in  the 
Confexlerate  States  ;  of  this  number,  fifteen  only  have  en- 
tered into  contracts.  Many  of  the  companies  have  waived 
the  proposal  to  contract,  for  the  present,  on  one  or  another 
ground.  Many  of  them  decline  to  accept  the  classification, 
and  compensation  assigned  to  their  roads,  and  it  is  manifest 
that  many  of  them  intend,  if  they  can,  to  avoid  liability  and 
the  legitimate  control  of  the  Department,  by  refusing  to 
enter  into  contracts,  while,  at  the  same  time,  they  signify  a 
willingness  to  perform  the  service,  but  under  some  protest, 
and  generally  that  they  must  have  higher  pay. 

In  order  to  meet  and  overcome  the  objection  to  entering 
into  contracts  with  tlie  Department,  1  have  directed  that  no 
payments  shall  be  made  to  the  companies  refusing  to  con- 
tract, for  any  time  after  the  end  of  the  month  of  June,  until 
they  enter  into  contracts,  and  I  shall  continue  to  act  on  this 
determination.  And  if  it  be  found  that  such  companies 
persist  in  refusing  to  contract,  I  shall,  after  all  reasonable 
and  proper  efforts  have  been  exhausted,  withhold  the  mails 
from  their  control  and  contract  for  carrying  them  in  the 
next  best  manner  which  may  be  found  available.     The  law 


15 

forbids  payment  until  contrac*:s  arc  made.  The  Department 
is  held  responsible  to  the  public  judgment  for  the  rc^szularity 
of  the  mails,  and  for  their  speedy  and  prompt  delivery. 
Companies  who  refuse  to  contract,  do  so,  it  is  believed,  for 
the  purpose  of  keeping  it  out  of  the  power  of  the  Depart- 
ment to  control  their  schedules  of  arrivals  and  departures, 
and  their  running  time.  And  they  retain  in  their  hands 
the  power  to  control  or  defeat  proper  schedules  of  service 
botli  on  their  roads  and  others  connected  Avith  them. 

To  tolerate  such  a  course,  is  to  invite  perpetual  confusion, 
misconnections,  delays  and  failures  of  the  mails,  and  to 
place  it  in  the  power  of  a  single  company  to  injure  the  pub- 
lic and  all  other  companies  whose  interests  depend,  in  any 
degree,  on  its  aciion.  When  they  are  offered  a  reasonable 
compensation  and  refuse  to  accept  it  and  to  contract,  as  we 
have  no  legal  means  of  compelling  them  to  a  just,  liberal  and 
patriotic  course,  I  see  no  remedy  but  to  refuse  to  deliver  the 
mails  to  them  and  let  an  injured  public  find  the  means,  if  it 
can,  of  compelling  them  to  a  reasonable  course  of  conduct. 
It  is  proper  in  this  connection  to  say  that,  even  at  the  re- 
duced rate  of  compensation  allowed  to  the  railroads,  of  this 
country  under  the  recent  act  of  Congress,  they  receive  a  high- 
er rate  of  compensation  than  the  railroads  of  any  other  country 
for  similar  service,  except  the  railroads  of  the  United  States. 
And  tliat  Government  has,  for  years  past,  remonstrated 
against  the  extravagance  of  those  rates,  and.  it  is  reasonable 
to  i^'fer  that  nothing  but  the  great  influence  of  so  many  and 
Biicl'  powerful  monopolies  has  prevented  this  wholesome  and 
necessary  reform.  Their  usefulness  and  importance  in  the 
conveyance  of  the  mails,  as  in  matters  of  commerce,  travel, 
and  the  operations  of  the  army,  are  fully  recognized  and 
appjeciated  by  this  Department ;  and  the  patriotic  and  pub- 
lic spirited  conduct  of  a  number  of  the  companies  in  these- 
times  of  trial  and  danger  is  gratefully  acknowledged;  but  it 
cannot  be  permitted  that  oJier  companies  shall  disregard  all 
other  interests  than  their  own  and  make  use  of  their  im- 
portant franchises,  granted  by  the  several  States  for  the 
public  good,  for  the  injur}^  of  others  and  the  public,  espe- 
cially in  times  like  these,  without  being  exposed,  at  least,  to^ 
public  reprobation. 

The  railroad  service  was  designed  to  be  daily,  and  it  was 
hoped,  with  proper  schedules  and  speed,  this  would  answer 
the  public  wants.  But  the  Department  has  encountered 
innumerable   difficulties  in    trying  to  get  proper  schelules 


16 

adopted,  and  lias  found  it  as  difficult  to  get  tlicm  conformed 
to,  after  being  adopted,  as  to  get  them  adopted  in  the  first 
instance. 

In  the  meantime,  the  railroads  have  been  necessarily, 
much  occupied  in  transporting  soldiers,  and  supplies,  and 
munitions  of  war,  which  has  materially  interfered  with  the 
regularity  of  the  mails.  And  the  War  Department  and 
army  officers  have  frequently  directed  military  schedules  to 
be  run  by  the  roads,  in  conflict  with  the  schedules  of  the 
Department. 

These  things,  with  the  ordinary  causes  of  delay  and  loss 
of  connections,  such  as  running  off  the  track,  breaking 
of  bridges,  &c.,  &c.,  have  rendered  the  mails  so  irregular, 
as  to  make  it  an  accident,  noAV,  instead  of  the  rule,  to  have 
regular  connections  between  any  distant  and  important 
points. 

The  Department  has  been  visited  with  much  censure  on 
account  of  these  irregularities,  notwithstanding  it  has  done 
everything  in  its  power  to  avoid  them,  and  is,  in  no  just 
sense,  responsible  for  them.  And  the  Companies  have  been 
pretty  generally  notified  that  the  Department  will  do  all  it 
can  by  way  of  fines  and  deductions  for  failures,  in  order  to 
compel  regularity  in  the  service. 

The  failure  of  the  railroad  companies  to  enter,  more  gen- 
erally, into  contracts,  places  it  out  of  the  power  of  the  De- 
partment, at  this  time,  to  form  any  reliable  estimate  of  the 
reduction  of  the  current  cost  of  the  railroad  service. 

Immediately  on  the  receipt  of  dispatches  conveying  the 
intelligence  of  the  destruction  of  the  bridges  on  the  line  of 
the  East  Tennessee  and  Virginia  Railroad  and  the  Georgia 
State  Road,  two  special  agents  of  the  Department  were  dis- 
patched by  the  Western  and  Southern  routes,  to  the  scenes 
of  disaster,  for  the  purpose  of  expediting  the  transit  of  the 
mails  and  of  giving  them  proper  direction,  in  the  event 
of  one  route  proving  to  be  more  fixvorable  to  their  transmis- 
sion than  the  other.  These  agents  have  reported  to  the 
Department  that  the  bridges  cannot  be  rebuilt  and  repaired 
so  as  to  insure  no  delay  in  the  transportation  of  the  mails, 
passengers  and  munitions  of  war  and  supi^lies  for  the  army, 
before  the  latter  part  of  December,  unless  the  Confederate 
Government  gives  some  aid  to  the  railroad  companies. 

The  present  delay  in  the  transmission  of  the  mails,  be- 
tween points  West  of  those  bridges  and  this  city,  occasioned 
by  the  destruction  of  the  bridges,  is  twenty-four  hours. 


17 

Another  fruitful  cause  of  complaint  against  the  Depart- 
ment in  regard  to  the  delay  of  mail  matter,  in  its  transit 
beyond  the  limits  of  a  State,  and  frequently  within  its 
limits,  is  the  neglect  of  postmasters  to  observe  the  regula- 
tions of  the  Department  in  relation  to  mailing  dh'ect  to  all 
points  within  the  State  in  which  the  mailing  office  is  located, 
and  to  all  points  in  other  States,  the  locality  of  which  is 
known  to  the  mailing  office.  Instead  of  complying  with 
these  regulations,  it  is  believed  that  the  majority  of  post- 
masters make  up  mail  packages  in  bulk  and  mail  them  to  the 
nearest  distributing  offices,  to  be  there  assorted  andremailed ; 
thus  producing  delay  and  expense  to  the  Department,  as  the 
postmaster  at  a  *' Distributing  Office"  receives  twelve  and 
one-half  {\2l)  per  cent,  commission  on  the  postage  upon 
all  matter  distributed. 

Distributing  offices  are  established  for  the  purpose  of  col- 
lecting and  receiving  the  mails  both  in  large  and  separare 
packages  from  various  points  for  particular  regions  of  coun- 
try, and  the  distributing  them  to  the  several  places  to  which 
they  are  addressed.  "  '-They  are  landmarks  to  the  distant 
offices  to  guide  the  course  of  their  mails  to  remote  points, 
receiving  them  as  they  are  made  up  at  the  mailing  office  and 
remailing  them  with  a  new  post-bill  and  new  entries  in  the 
accounts  of  'mails  received'  and  'mails  sent'  to  their  res- 
pective destinations."  This  is  their  legitimate  function,  but 
the  carelessness  and  indiiference  of  postmasters  and  their 
clerks,  throw  upon  these  offices  a  vast  amount  of  mail  matter 
(and  consequent  increase  of  labor)  which  ought,  in  justice 
to  the  public  and  the  Department,  to  be  mailed  direct.  This 
is  especially  the  case  at  the  present  time,  when  large  bodies 
of  troops  are  frequently  stationed  in  the  vicinity  of  offices, 
which  have  heretofore  been  of  but  little  importance ;  the 
office  at  once  springs  into  one  of  great  labor  and  responsi- 
bility, if  the  postmaster  discharges  his  duty,  in  mailing  the 
letters  intrusted  to  his  care ;  but  recent  investigations, 
under  the  direction  of  the  Department,  have  established  the 
fact  that,  in  every  instance,  the  postmasters  in  the  vicinity 
of  camps,  mail  their  letters  171  hulk,  to  the  nearest  distribut 
ing  office,  thereby  causing  a  detention  of  generally  24  hours 
in  tlic  transit  of  the  letters.  Unfortunately  for  the  credit 
of  the  postal  service,  the  evils  indicated  arc  not  confined  to 
the  smaller  offices  in  the  Confederate  States,  but  are  also 
found  in  the  ''Distributing  Offices."  I  have  recently  in- 
structed intelligent  and  efficient  agents  of  the  Department, 
2 


18 

•wliosc  long  experience  in  the  postal  service  has  made  them 
familiar  with  the  vast  net  work  of  post-roads  in  the  Con- 
federate States,  to  visit  the  several  distributing  offices  therein 
and  examine  and  revise  their  distribution  tables  and  to  in- 
crease the  number  of  offices  to  which  they  should  invariably 
mail  direct.  These  agents  have  commenced  their  labors,  and 
from  reports  received  from  them,  in  the  progress  thereof,  I 
find  that  there  have  been  many  and  great  abuses  in  the  dis- 
tribution system,  to  the  correction  of  which  the  most  earnest 
and  diligent  efforts  of  the  Department  will  be  directed. 

APPOINTMENT  BUREAU. 

The  whole  number  of  post  offices  in  the  Confederate 

States  on  the  1st  of  June  1861,  was 8,411 

Of  this  number  there   have  been  discontinued  since 

that  date 183 

Leaving  in  operation 8,228 

Num1)er  established  since  the  1st   of  June 72 

Whole  number  of  post  offices   now  in  operation 8,300 

Number  of  post  offices  of  which  the  names  and  sites 

were  changed 47 

Number    of  postmasters   who   have   been    appointed 

since  the  1st  of  June 6,261 

Number  of  postmasters  commissioned  by  this  Depart- 
ment since  that  date , 4, 184 

Whole    number    of    resignations    during    the    same 

period 050 

Of  which  number  459  were  resignations  of  appointments 
conferred  by  this  Department,  and  the  residue  491  were 
resignations  of  appointments  held  under  the  Govern- 
ment of  the  United  States.  The  number  of  postmasters 
subject  to  appointment  by  the  President,  by  and  Avith  the 
advice  and  consent  of  Congress,  is  seventy,  (70),  of  which 
number  sixty-seven  (67)  have  been  appointed,  confirmed  and 
commissioned,  their  bonds  having  been  properly  executed 
and  filed  in  the  Department.  The  number  of  route  agents 
in  service,  on  the  railroads  and  steamboats  of  the  Confeder- 
ate States,  on  the  first  day  of  June,  was  one  hundred  and 
twenty-three,  (123),  of  whom  one  hundred  and  ten  (110) 
have  been  appointed  by  this  Department,  and  five  (5)  have 
been  removed.     The  reappointment  of  the  remaining  thir- 


19 

teen  (13)  is  suspended  for  various  causes.  Seven  perma- 
nent and  one  temporary  special  agents  have  been  appointed, 
and  full  instructions  in  relation  to  their  duties,  together  with 
the  new  postal  laws,  passed  by  the  Confederate  Congress,. 
have  been  prepared  and  issued  to  them  and  to  postmasters. 

A  contract  was  made  in  June  last  for  the  printing  of  post 
office  blanks,  and  paper  for  the  same,  upon  the  terms  pre- 
scribed by  the  Act  of  Congress,  approved  27th  February, 
1861,  and,  up  to  the  present  time,  the  contractors  have  de- 
livered to  the  Department  seven  hundred  and  sixty-one  (761) 
reams  of  printed  blanks. 

This  quantity  has  enabled  the  Department  to  supply  two 
thousand  five  hundred  and  sixty-one  (2,561)  post  offices  with 
blanks  of  all  the  several  kinds  used ;  sixteen  hundred  and 
fifty-six  (1,656)  post  offices  with  all  kinds,  except  post  bills, 
and  four  hundred  and  seventeen  (417)  have  been  supplied 
with  accounts  current  and  mails  received  and  sent.  The 
whole  number  of  orders  for  blanks,  filled  by  this  Bureau 
was  four  thousand,  six  hundred  and  fifty-four,  (4,654.)  The 
number  of  orders  for  blanks,  which  have  not  been  furnished, 
in  consequence  of  the  inability  of  the  contractor  to  obtain 
paper  and  have  the  printing  done  in  time  to  meet  the  wants 
of  the  Department,  is  six  hundred  and  forty-six,  (646). 

A  contract  was  also  made  in  May  last,  for  furnisliing  Manil- 
la wrapping  paper,  upon  very  favorable  terms  to  the  Depart- 
ment, and  the  number  of  reams  distributed  to  post  offices, 
is  eight  hundred  and  eighty-six,  (886).  Forty-nine  (49) 
orders  for  marking  and  rating  stamps  have  been  filled,  under 
contract,  and  seven  hundred  and  fifty-seven  (757)  pounds  of 
cotton  twine  have  been  furnished  to  post  offices.  Applica- 
tions have  been  made  for  '•'  letter  balances,"  but  the  De- 
partment has  not  been  able  to  procure  them,  as  they  are  not 
manufactured  South  of  Boston,  Mass.  Tabular  statements 
exhibiting  the  operations  of  this  Bureau,  by  States,  in 
detail,  are    subjoined,  marked  exhibits  E  and  F. 

Notwithstanding  the  prompt  and  energetic  efforts  of  this 
Bureau,  by  the  issue  of  proclamations  and  urgent  letters,, 
requiring  information  to  be  furnished  to  the  Department, 
there  has  been  great  delay  in  the  receipt  of  the  responses 
from  postmasters,  which  are  necessary  to  enable  the  Depart- 
ment to  reappoint  them,  or  to  appoint  others  in  their  stead; 
and  the  inaccuracy  in  the  execution  of  the  bonds  of  post- 
masters, has  delayed  the  issue  of  commissions  to  many  of 
those  who  have  been  appointed. 


20 

FINANCE  BUREAU. 

The  books  of  tliis  Bureau  exliibit  the  fact,  that  the  post- 
masters, who  are  required  by  the  Department  to  deposit 
quarterly,  or  oftener,  the  revenues  of  their  offices,  have  de- 
posited in  the  Treasury  and  its  branches,  since  the  first  of 
June,  1861,  the  sum   of  seventy-five  thousand,  six  hundred 

and  five  doHars,  and  seventy  cents $  75,605  70 

The  amount   of  grants  from  the  Treasury,  in 
aid  of  the  revenues  of  the  Department  was 
l)y  the  Act,  approved  March  16,  1861...    320,060  36 
And  by  the  Act  approved  29th  August 500,000  00 

Total  of  deposits   and  grants $805,666  06 

Since  the  27th  July,  337  warrants  have  been 
issued  upon  the  Treasury,  in  payment  of 

the  postal  service,  amounting  to $225,434  96 

Leaving  undrawn  and   subject  to  warrants,  in 

payment  of  postal  service $670,231    10 

675  drafts  have  been  issued  upon  a  class  of  post 
offices  styled  ^'  draft  offices,"  in  payment 
of  the  postal  service,  for  sums  amounting 

to $    40,288  36 

The  quarterly  returns  of  postmasters  are  rendered  to  this 
Bureau  and  are  there  opened,  the  ''dead  letters"  and  post- 
bills  separated  from  the  other  portions  of  the  account,  the 
balance  as  shown  by  the  adjustment  of  the  postmasters  care- 
fully recorded  in  alphabetical  order,  and  the  account  is  then 
delivered  to  the  Auditor  for  adjustment.  The  number  of 
dead  letters  received  and  opened,  up  to  this  date,  is  88,682. 
The  number  of  drop  letters,  8,512.  The  number  of  letters 
held  for  postage,  7,818.  967  dead  letters  contained  in 
money,  $5,751  80,  and  1811  contained  drafts,  bills  of  ex- 
change, notes  and  other  valuable  papers,  amounting  to 
$l,!;i38,643  57. 

A  large  amount  of  the  foregoing  belongs  to  persons  not 
residents  of  the  Confederate  States,  and  will  be  placed  in  the 
hands  of  the  proper  judicial  officers,  to  be  disposed  of  under 
the  Sequestration  Act. 

The  foreign  letters,  except  those  for  the  French  Govern- 
ment and  the  United  States,  have  been  unopened.  In  com- 
pliance with  the  request  of  the  French  Consul,  I  have  had 
the  letters  from  France  opened,  and  those  which  contained 
money  and  valuable  papers  delivered  to  him. 


21 

The  Eno'lish  letters  have  been  delivered  to  the  En  owlish 
Consul. 

Six  hundred  and  ninety-four  dead  letters,  containing 
money  to  the  amount  of  $4,593  30,  have  been  returned  to 
the  writers  thereof.  Fifty-seven  letters,  containing  $352  05, 
have  been  sent  to  the  offices  at  Avhich  they  were  mailed  to  be 
delivered  to  the  proper  persons  by  the  postmasters,  and  have 
been  again  returned  to  the  Department  unclaimed.  One 
hundred  and  fifty-two  letters  are  not  yet  sent  out  for  delivery 
to  their  writers.  They  contain  $441  45.  Sixty-four  letters, 
containing  $360  belong  to  non-residents  of  the  Confederate 
States. 

The  first  delivery  of  postage  stamps  by  the  contractors 
was  made  on  the  1  5th  October  last,  and  since  that  date  only 
1,430,700  stamps  have  been  received,  all  of  which  have  been 
issued  by  this  Bureau  to  post  offices  near  which  large  bodies 
of  troops  have  been  situated,  with  a  view  to  their  special 
accommodation. 

POSTAGE  STAMPS. 

The  difficulties  which  have  been  encountered  by  the  De- 
partment in  its  endeavors  to  procure  postage  stamps  and' 
stamped  envelopes,  producing  great 'delays  in  procuring 
them  in  such  quantities  as  to  meet  the  demands  of  the 
public,  have  caused  much  impatience  to  be  manifested  on 
that  account,  which  induces  me  to  state,  at  some  length,  the 
various  efforts  made  by  the  Department  to  procure  them,  as 
well  for  the  information  of  Congress  as  for  the  vindication 
of  the  Department  against  charges  of  neglect  of  duty  in  that 
respect. 

The  manifest  advantage  of  having  stamps  and  stamped 
envelopes  for  the  payment  of  postage  has  been  from  the  first 
fully  realized  by  the  Department,  and  immediately  after  my 
appointment,  and  before  the  Department  was  organized, 
correspondence  was  commenced  with  such  parties  as  were 
known  to  be  able  to  manufacture  them,  for  the  purpose  of 
procuiing  them  at  the  earliest  day  possible.  Propositions 
were  submitted  early  in  March  last,  from  parties  not  residing 
in  the  Confederate  States,  to  supply  them,  and  the  Depart- 
ment was  led  to  believe  they  might  be  obtained  b^  the  time 
it  could  be  organized  and  prepared  to  take  control  of  the 
service.  But  the  political  changes  then  going  on  so  rapidly, 
and  the  increasing  probabilities  of  hostilities  between  the 
ncAV  and  the  old  Governments,  soon  rendered  the  fulfillment 


22 

'of  the  first  proposition  to  fiirnisli  stamps  and  stamped  en- 
'.velopes  impossible. 

On  the  16th  of  March,  a  proposition  Avas  submitted  by  a 
gentleman  having  the  means  and  capacity  for  manufacturing 
them,  to  establish  a  house  in  the  city  of  Montgomery  for  that 
purpose  and  for  the  purpose  of  doing  any  other  engraving, 
lithographing  and  printing  which  might  be  required  by  the 
Government.  Assurances  were  given  him  that  he  should  have 
the  contract  for  furnishing  stamps  and  stamped  envelopes,  and 
at  his  request,  and  to  facilitate  the  early  manufacture  of  them, 
he  was  furnished  by  the  Department,  with  designs  for  the  vari- 
ous denominations  of  stamps,  in  order  that  he  might  com- 
plete the  necessary  engravings  by  the  time  his  presses  and 
other  materials  could  be  prepared.  He  left  that  city,  as  he 
said,  for  the  purpose  of  carrying  into  effect  that  enterprise, 
and  nothing  was  heard  from  him  afterwards. 

On  the  27th  of  March  the  Department  advertised  for 
proposals  for  furnishing  stamps  and  stamped  envelopes,  in 
newspapers  in  the  following  cities,  to  wit :  Montgomery, 
New  Orleans,  Charleston,  Baltimore,  Philadelphia,  New 
York,  Savannah,  Columbus,  Richmond,  Memphis,  and  Lou- 
isville. No  proposals  in  response  to  this  advertisement  were 
received  from  any  establishment  in  the  then  Confederate 
States.  The  only  proposals  made  in  answer  to  this  adver- 
tisement were  one  from  Richmond  and  one  from  Baltimore, 
proposing  to  furnish  lithographed  stamps.  The  proposition 
from  Baltimore  was  regarded  as  most  favorable,  both  on  ac- 
count of  the  style  of  the  work  proposed  to  be  done  and  the 
terms  on  which  the  supplies  were  proposed  to  be  furnished. 
But  the  collision  between  the  citizens  of  that  city  and  the 
Federal  troops,  on  the  20th  of  April,  and  consequent  sus- 
pension of  communication  with  that  city,  prevented  further 
negotiations  on  the  subject. 

A  skillful  engraver,  not  a  citizen  of  the  Confederate  States, 
visited  Montgomery  early  in  May,  for  the  purpose  of  enter- 
ing into  a  contract  to  furnish  stamps  and  stam})ed  envelopes, 
to  be  executed  in  the  highest  style  of  art.  When  there,  it 
became  manifest  that  the  condition  of  affairs  between  the 
United  States  and  our  Government  would  interrupt  the  de- 
livery of  these  articles  from  the  place  at  which  he  proposed 
to  manufacture  them.  He  then  entered  into  an  agreement 
to  make  the  stamps  in  the  Confederate  States,  subject  to  the 
contingency  of  his  being  prevented  from  introducing  the 
.necessary  machinery  by  hostilities  between  the  two  Govern- 


23 

ments.  In  June,  tlie  Department  received  notice  from  him 
that  it  would  be  out  of  his  power  to  introduce  the  machinery 
and  fulfill  his  agreement. 

In  July,  a  confidential  agent  was  employed  by  the  De- 
partment to  procure  the  making  of  the  required  steel  dies 
and  plates  for  postage  stamps,  beyond  our  territory,  and  to 
furnish  them  to  the  Department  as  soon  as  they  could  be 
prepared,  and  also,  if  found  practicable,  to  have  the  stamps 
made  and  furnished  ready  for  use 

After  receiving  some  encouragement,  and  after  the  work 
of  making  steel  dies  had  been  commenced,  circumstances 
rendered  the  discontinuance  of  the  work  by  the  manufiictu^ 
rer  necessary.  And  our  agent  then  made  an  effort,  at  an- 
other point,  to  procure  lithographed  stamps  of  a  superior 
style,  and  after  some  delay  it  became  necessary  to  abandon 
that  effort  to  supply  the  Department.  This  brought  us  to 
September.  And  in  the  meantime  an  extensive  correspond- 
ence was  kept  up  by  the  Department,  and  has  been  steadily 
persevered  in  up  to  this  time,  with  persons  in  various  cities 
in  the  Confederate  States,  and  indeed  with  every  person  who 
was  represented  to  the  Department  as  an  engraver,  who 
might  execute  the  work  desired.  Urged  by  the  wants  of  the 
public,  the  Department  was  induced,  as  a  temporary  expe- 
dient, to  make  arrangements  with  a  lithographic  establish- 
ment in  this  city  for  the  manufiicture  of  lithographed  stamps. 
Unexpected  delay,  however,  occurred  in  the  preparation  of 
them  ;  and  after  the  completion  of  the  plates,  the  supplies 
furnished  to  the  Department  were  so  insufficient  to  meet  the 
demand  for  them  and  the  prices  charged  so  exorbitant,  as 
compared  with  the  cost  of  the  superior  steel-plate  impres- 
sions in  use  in  the  United  States  and  other  governments, 
that  a  special  agent  was  dispatched  on  the  27th  October  to 
Charleston,  S.  C,  and  Savannah,  Ga.,  for  the  purpose  of  as- 
certaining the  practicability  of  having  stamps  printed  there 
on  more  favorable  terms,  and  in  quantities  equal  to  the 
public  demand.  This  agent  returned  to  the  Department, 
November  4th,  and  reported  that  the  engravers  and  litho- 
graphers of  those  cities  would  submit  estimates  to  the  De- 
partment so  soon  as  they  could  ascertain  the  cost  of  machi- 
nery and  paper.  I  have  just  received  a  letter  from  Charles.- 
ton  submitting  a  proposal  for  furnishing  stamps,  but  stating 
that  it  would  require  at  least  ninety  days  for  the  preparation 
of  the  necessary  machinery  and  plates. 

This  engraver  proposes   to  furnish  the   stamps  gummed, 


24 

but  not  perforated,  at  a  cost  of  one  dollar  per  thousand,  the 
paper  to  be  furnished  by  the  Department,  whereas  the 
United  States  Government  paid  but  eighteen  cents  per 
thousand  stamps,  gummed,  perforated,  and  put  up  in  tin  and 
paper  boxes  and  envelopes,  without  extra  charge  for  paper, 
and  boxes,  and  envelopes. 

The  engraver,  in  Savannah,  under  date  of  21st  Novem- 
ber, states  that  it  will  require  sixty  days  to  prepare  the  plates 
for  printing  each  denomination,  and  the  delivery  of  400,1)00 
stamps,  and  that  with  his  present  force  he  can  only  furnish 
80,000  stamps  daily.  The  estimated  number  require<l  for 
daily  use  is  about  260,000.  In  the  meantime,  on  the  first 
day  of  October,  a  confidential  agent  was  provided  with  am- 
ple means  and  dispatched  to  Europe  to  procure  the  manu- 
facture of  steel  dies  and  plates  for  printing  stamps  of  the 
several  denominations  provided  by  law,  and  for  procuring 
for  use,  as  soon  as  practicable,  fifteen  millions  of  stamps, 
and  to  forward  the  dies,  plates  and  stamps  to  this  city.  The 
small  supplies  now  being  received  from  the  contractors  in 
this  city  only  serve  to  increase  the  public  discontent,  as 
they  are  insufficient  to  meet  the  demands  of  even  the  prin- 
cipal cities. 

It  is  a  fact  well  established  by  the  experience  of  other 
governments,  and  of  Bankers  generally,  that  impressions 
taken  from  skilfully  prepared  steel  dies  and  plates,  are  the 
only  safeguard  against  counterfeiting,  and  the  Department 
has  been  very  reluctant  to  adopt  any  other  character  of 
postage  stamp. 

The  Department  has  received  several  propositions  from 
persons  professing  a  knowledge  of  the  art  of  engraving  and 
preparing  stamps,  but  correspondence  and  investigation  have 
shown  that  they  had  neither  the  required  skill  and  know- 
ledge for  this  purpose,  nor  tlie  means  of  furnishing  the 
stamps,  and  Avere  ignorant  of  the  requirements  for  the  pre- 
paration of  them.  When  prepared  and  supplied  as  they 
should  be,  to  all  post  offices,  they  wil^.  represent  the  entire 
revenues  of  the  Department. 

There  is  a  popular  delusion,  resting  on  the  minds  of 
many,  that  almost  any  character  of  engraving  will  answer 
for  postage  stamps,  and  in  support  of  this  opinion,  refer- 
ence is  frequently  made  to  the  fact  that  postmasters  of  dif- 
ferent cities  and  towns  have  procured  stamps  for  their 
offices.  These  are  made  upon  wood,  or  stone,  or  lead,  or  are 
electrotyped.     Stamps   prepared  by  either  of  these   modes 


25 

can  be  counterfeited  vritli  o^reat  facility  bv  a  mere  tyro  in  the 
art  of  engraving ;  and  the  Department  couhl  not  risk  its 
revenues  on  such  slender  security  without  disregarding  the 
public  interest. 

PAYMENT  OF  POSTAGE. 

Capital  is  always  timid  in  times  of  war   and  commercial 
depression  like  the  present.     And  this,  with  the  suspension 
of  specie  payment  by  all  the  banks,  and  the  fact  that  corpo- 
rations and  individuals  have  issued   and  put  in  circulation, 
in   many  portions   of  the   country,  small  notes  which  are 
substituted  for  specie  as  change,  has  caused  the  coin  of  the 
country  to   disappear,  to  a  great  extent,  from  circulation. 
This  renders  the  payment  of  postage  difficult  in  the  absence 
of  stamps,  embarrassing  the  people,  and  necessarily  reduc- 
ing the  revenues  of  the  Department.     In  view  of  this,  and 
of  the  impossibility  of  obtaining  a  sufficient  supply  of  post- 
age stamps  for  the  present,  I  recommend  that  Congress  ex- 
tend the  provisions  of  the  act  "  to  require  the  receipt  by 
the  postmasters  of  the  Confederate  States  of  Treasury  notes, 
in  sums  of  five  dollars  and  upwards  in  payment  of  postage 
stamps  or  stamped  envelopes,"  approved  the  3')th  of  August 
last,  so  as  to  make  the  Treasury  notes  receivable  in  sums  of 
five  dollars,  or  of  amounts  equal  to  other  denominations  of 
Treasury  notes,  for  j^ostage.     It  is  necessary  to  limit  the 
receipt   of  Treasury  notes   to   amounts   corresponding  with 
their  several  denominations,  and  to  leave  it  to  the  postmas- 
ters and  persons  paying  postage  to  arrange  between  them- 
selves the  manner  in  which  these  notes  may  be  used,  as  it 
cannot  be  expected  that  postmasters  should  furnish  coin  in 
change  for  them,  on  account  of  its  scarcity,  and  it  would  be 
wholly  inadmissible  to   alloAV  them   to  receive   and  use  the 
small    notes,  issued   by   corporations    and    individuals,   for 
change,  partly  on  account  of  the  general  vf  orthlessness  of  such 
notes  and   the  facility  for  counterfeiting  them,  and  partly 
because  whatever  value  they  have  is  usually  limited  to  some 
small  locality  which  renders  them  wholly  unfit  for  use  as  a 
Confederate  currency. 

INCREASE  OF  CLERICAL  FORCE. 

At  the  time  the  present  permanent  clerical  force  was  pro- 
vided for  this  Department,  there  were  but  seven  States  in 
the   Confederacy;    since  that  time  four  States  have   been 


26 

added,  increasing  the  business  of  the  Department  to  an 
extent  be^'ond  the  ability  of  the  reguhir  clerical  force  to 
give  it  that  prompt  and  careful  dispatch  which  is  essential 
to  a  successful  administration  of  its  affairs.  Hence  it  be- 
came necessary  to  employ,  temporarily,  some  ten  additional 
clerks.  The  necessity  of  an  immediate  revision  of  the  post 
routes  in  the  States  of  Alabama,  Mississippi,  Louisiana, 
Texas,  Arkansas  and  Tennessee,  preparatory  to  their  being 
advertised  for  proposals  for  new  service,  to  begin  on  the 
30th  June  next,  at  which  time  the  present  contracts  termi- 
nate, will,  in  addition  to  the  reason  first  stated,  render  a 
permanent  augmentation  of  the  clerical  force  necessary. 
Therefore,  I  respectfully  suggest  that  there  be  added  to  the 
present  permanent  force  of  the  Department  five  clerks  at  an 
annual  salary  of  twelve  hundred  dollars  each,  and  five  clerks 
at  an  annual  salary  of  one  thousand  dollars  each. 

SERVICE  IN  KENTUCKY  AND  ARIZONA. 

The  condition  of  affairs  in  the  State  of  Kentucky  and  'n 
the  Territory  of  Arizona,  (Missouri  now  being  admitted 
as  a  State  of  the  Confederacy),  requires  that  postal  facili- 
ties be  extended  to  such  portions  of  them  as  are  in  the 
possession  of  our  friends,  or  are  occupied  by  our  troops.  A 
portion  of  their  citizens  are  gallantly  struggling  in  arms  to 
unite  their  political  destiny  with  ours,  and  it  is  of  the  first 
importance  that  we  aflbrd  facilities  for  correspondence  and 
for  the  circulation  of  newspapers  between  our  people  and 
them,  to  promote  trade  and  secure  a  free  interchange  of 
opinions.  And  I  respectfully  recommend  that  Congress  give 
this  Department  such  authority  as  may  be  proper  for  this 
purpose. 

FREE  MAIL  MATTER. 

I  must  also  call  attention  to  the  fact  that  the  special  and 
route  and  local  agents  of  the  Department  are  re(|uired  to 
make  frequent  and  sometimes  voluminous  reports  to  the 
Department,  and  to  correspond  with  each  other  and  with 
postmasters,  in  regard  to  the  service ;  and  there  is  no  law 
to  relieve  them  from  paying  the  postage  out  of  their  private 
means,  on  this  correspondence  relating  to  ofiicial  business. 
This  condition  of  things  must  result  in  taxing  these  neces- 
sary agents,  so  as  to  drive  them  out  of  the  service  or  in 
causing  them  to  omit  the  discharge  of  their  most  important 


27 

duties,  in  order  to  avoid  the  expense  of  paying  the  postage 
on  their  communications. 

The  contractors  for  carrying  the  mails  are  also  required 
to  make  frequent  responses  to  communications  sent  them 
from  the  Department  in  relation  to  the  service,  and  to  return 
to  the  Auditor,  quarterly,  the  evidence  of  payments  made 
them  for  such  service,  and  to  report  to  the  Department  the 
cause  of  every  failure  and  of  all  irregularities,  in  the  ser- 
vice, on  their  several  routes.  I  must  therefore  ask  that 
Congress  make  some  provision  to  relieve  them  from  the  pay- 
ment of  thJs  postage.  This  can  be  done  by  authorizing 
them  to  charge  the  amount  to  the  Confederate  States  in 
their  quarterly  accounts  for  repayment  under  such  restric- 
tions as  Congress  may  prescribe,  or  by  authorizing  them  to 
frank  such  communications,  under  the  same  restrictions 
placed  upon  others  connected  with  the  Post  Office  Depart- 
ment, who  are  authorized  to  frank  their  official  correspon- 
dence. 

This  again  brings  up  the  question  as  to  Avhethcr  we  are 
to  adhere  strictly  to  the  policy  of  requiring  all  mail  matter 
to  be  pre-paid,  or  are  to  extend  the  franking  privilege  be- 
yond its  present  limits. 

By  the  5th  section  of  the  Act  "  to  prescribe  the  rates  of 
postage  in  the  Confederate  States  of  America,  and  for  other 
purposes,"  approved  February  23,  1861,  the  franking  priv- 
ilege was  abolished,  except  as  to  the  Post  Master  General, 
his  Chief  Clerk,  the  Auditor  of  the  Treasury  for  the  Post 
Office  Department,  and  "  the  several  deputy  post  masters 
throughout  the  Confederate  States." 

By  the  4th  section  of  "  an  Act  to  amend  An  Act  to  pre- 
scribe the  rates  of  postage  in  the  Confederate  States  of 
America,  and  for  other  purposes,  approved  February  23, 
1861,"  which  latter  Act  was  approved  May  13,  1861,  the 
franking  privilege  was  extended  to  the  Chiefs  of  the  Con- 
tract, Appointment  and  Finance  Bureaus  of  the  Post  Office 
Department. 

If  it  should  now  be  extended  to  the  persons  above  named, 
the  entire  official  correspondence  of  this  Department  will 
then  be  carried  on  without  the  payment  of  postage.  If  it 
is  not  extended  to  these  persons  because  the  principle  is 
wrong,  then  it  should  be  abolishedas  to  those  now  exercising 
it,  and  all  should  be  required  to  pay  the  postage  on  their 
official  correspondence  and  charge  it  for  repayuient  to  the 
Confederate  States.     And  this  Avould  involve  the  necessity 


28 

of  adopting  sucli  checks  against  tlie  misapplication  of  the 
fund  set  apart  for  the  payment  of  such  postage  as  wouhl 
guard  against  loss  to  the  Treasury.  Novr,  so  far  as  relates 
to  the  Post  Office  Department,  the  check  against  the  abuse 
of  the  franking  of  letters,  &c.,  is,  that  every  communication 
franked  must  be  seen  by  others,  and  if  any  part  of  it  relates 
to  private  matters,  the  person  franking  it  is  liable  to  a  fine 
of  three  hundred  dollars. 

The  franking  of  the  official  correspondence  of  the  De- 
partment is  only  productive  of  a  loss  of  revenue  by  the 
abuse  of  the  authority  to  frank.  The  result  being  the  same 
to  the  revenues  of  the  Department  as  it  would  be  if  the  De- 
partment paid  the  postage  out  of  the  Treasury,  and  collected 
and  paid  it  in  again.  But  if  the  postage  of  the  Department 
is  to  be  paid,  accounts  and  vouchers  must  be  kept  as  evidence 
of  the  proper  application  of  the  fund  used  for  that  purpose, 
or  we  must  trust  this  fund  to  the  honor  of  more  than  eight 
thousand  post  masters,  two  thousand  five  hundred  contrac- 
tors, and  more  than  a  hundred  special  and  route,  and  local 
agents  of  the  Department,  besides  those  in  the  Post  Office 
Department.  To  adopt  the  latter  policy  would  be  to  aban- 
don the  principles,  for  the  security  of  revenue,  of  our  own 
and  all  other  Governments,  which  it  is  fair  to  presume  will 
not  be  done.  It  is  true  that  no  great  amount  of  fraud  could 
be  perpetrated  by  any  one  of  these  persons;  but  small  frauds 
by  many  might  produce  a  considerable  aggregate.  If  we 
adopt  the  former  course  of  requiring  accounts  and  vouchers 
to  be  kept,  this  will  require  the  time  of  correspondents  and 
accountants,  and  the  use  of  books  and  stationery  to  be  added 
to  the  cost  of  postage.  And  it  is  to  be  remembered  that  the 
Government  pays  as  a  compensation  to  post  masters  on  all 
sums  of  one  hundred  dollars  or  less,  60  per  cent.,  and  if  for 
night  service,  70  per  cent.,  and  on  sums  of  three  hundred 
dollars  more,  50  per  cent.,  on  all  sums  of  two  thousand  dol- 
lars more,  40  per  cent.,  and  on  all  sums  over  two  thousand 
four  hundred  dollars,  15  per  cent.,  until  their  commissions 
reach  two  thousand  dollars.  And  if  the  Department  should 
pay  its  postage,  the  per  cent,  allowed  as  a  compensation  to 
post  masters  would  necessarily  be  subtracted  from  the  amount 
of  postage  paid  out  before  its  return  to  the  Treasury.  All 
that  is  said  on  this  subject  in  relation  to  the  Post  Office  De- 
partment applies  with  equal  force  to  the  other  departments 
of  the  Government  except  that  to  make  that  Department 
self-sustaining,  it  is  not  necessary  that  any  amount  should 


29 

be  paid  out  of  the  general  Treasury  to  cover  the  expense  of 
its  own  correspondence  when  franked  in  order  to  render  it 
self-sustaining — the  theory  being  that  its  postage  is  to  be 
paid  out  of  its  own  revenues,  while  all  matter  not  connected 
Tvith  the  Department,  embracing  the  correspondence  of  the 
other  departments,  must  be  paid  in  order  that  it  may  not  be 
deprived  of  its  revenues.  And  if  the  amount  of  the  postage 
of  the  other  departments  could  be  ascertained  so  as  to  be 
paid  in  gross  into  the  Treasury,  I  am  of  opinion  it  would  be 
more  convenient  and  less  expensive,  and  probably  less  liable 
to  abuse,  to  frank  the  correspondence  of  all  the  departments 
than  to  pre-pay  the  postage  on  it.  But  there  is  no  means 
by  which  the  amount  of  the  postage  of  the  other  depart- 
ments can  be  ascertained  so  as  to  be  paid  in  gross.  This 
being  so,  it  is  for  Congress  to  determine  wdiether  they  shall 
continue  to  pre-pay  their  postage,  and  if  that  policy  be  ad- 
hered to,  whether  it  shall  be  applied  to  the  Post  Office  De- 
partment. 

These  views  are  presented  on  the  questions  of  convenience 
and  economy  alone,  and  without  reference  to  the  influence 
which,  allowing  the  official  correspondence  of  the  depart- 
ments of  the  Government  to  be  franked,  might  have,  in  ex- 
tending the  franking  privilege  to  Congress,  and  from  thence 
to  its  abuse  in  the  printing,  binding,  folding  and  distribu- 
tion of  what  is  called  public  documents,  as  well  as  its  abuse 
by  covering  mere  private  correspondence,  which  should,  un- 
der no  pretense,  be  allowed  to  be  franked.  If  it  be  thought 
that  allowing  the  Departments  to  frank  their  official  corres- 
pondence would  be  regarded  as  a  precedent  or  a  reason  for 
allowing  the  privilege  to  members  of  Congress  and  to  others, 
then  I  am  persuaded  it  would  be  best  to  forego  any  advan- 
tage the  Government  might  derive  from  it,  if  such  advantage 
should  be  thought  to  exist,  rather  than  risk  the  evils  which 
flowed  from  the  franking  privilege  in  the  old  Government. 

This  Congress  commenced  its  legislation  on  this  subject 
by  abolishing  the  franking  privilege,  except  as  to  certain 
persons  connected  with  the  postal  service.  But  by  the  1st 
section  of  the  Act  "  relating  to  the  pro-payment  of  postage 
in  certain  cases,  approved  July  29,  1861,"  it  is  provided 
that  letters,  &c.,  may  be  sent  through  the  mails  by  any  offi- 
cer, musician,  or  private  of  the  army  without  the  pre-pay- 
ment  of  the  postage,  but  leaving  it  to  be  paid  at  the  point 
of  delivery,  upon  the  person  endorsing  his  name,  &c.,  on 
the  letter  or  other  matter  sent.     This  was  the  first  departure 


30 

from  the  rule  requiring  pre-payment  of  mail  matter,  except 
as  to  the  correppondence  of  this  Department.  It  is  also  the 
first  act  recognizing  the  franking  privilege  as  a  personal 
convenience  or  benefit.  In  addition  to  the  fact  that  this  act 
is  -wrong  in  principle,  and  as  a  precedent  operates  inju- 
riously in  two  particulars, it  deprives  the  post  masters  who 
prepare  the  way-bills  and  mail  such  letters,  of  any  com- 
pensation, and  gives  the  compensation  to  post  masters  who 
only  deliver  the  letters,  and  who  also  get  the  postage  on  the 
return  letters  Avliich  go  back  to  the  post  masters,  mailing 
the  first  letters  for  nothing,  and  they  have  to  deliver  the 
answers  without  compensation.  And  it  enables  persons, 
which  is  often  done,  to  tax  others,  on  whose  bounty  they 
have  no  claim,  with  the  postage  both  ways  on  their  private 
business. 

The  3d  section  of  the  same  Act  confers  a  similar  privilege 
on  members  of  Congress,  and  is  obnoxious  to  the  same  ob- 
jections. 

From  the  above,  it  will  be  seen  that  a  distinction  is  taken 
between  the  duty  of  franking  the  purely  official  correspon- 
dence of  the  departments  of  the  Government  as  a  means  of 
saving  the  public  moneys,  and  to  avoid  an  increase  of  the 
number  of  correspondents  and  accountants,  and  the  privilege 
of  franking  as  a  matter  of  personal  interest  and  advantage 
to  those  invested  with  it,  at  the  expense  of  the  Treasury  ; 
the  one  a  means  of  saving  the  revenues  of  the  Department 
so  as  to  render  it  self-sustaining  without  personal  benefit  to 
any  one — the  other  of  reducing  its  revenues  so  as  to  ren- 
der appropriations  from  the  general  Treasury  necessary  to 
its  support,  and  of  indirectly  taxing  the  public  for  private 
and  personal  benefit. 

MAILABLE    MATTER    NOT    TO    BE    CARRIED    AS 
FREIGHT. 

Tliis  Department  has  encountered  many  complaints  be- 
cause, under  our  legislation,  postage  is  required  to  be  paid 
on  all  neAvspapers  and  periodicals,  (except  those  authorized 
to  be  sent  free  of  postage,  as  exchanges  between  publishers). 

Under  the  hxAVS  of  the  United  States,  as  they  stood  up  to 
February  last,  newspapers  and  periodicals  could  be  sent  as 
freight,  by  expressmen  or  others,  along  the  post-roads,  free 
of  postage.  Under  our  laws,  all  newspapers  and  periodicals 
are  mailable  matter,  and  cannot  be  sent  along  the  post-roads 
without  the  payment  of  postage. 


31 

If  Congress  should  allow  them  to  be  carried  by  express- 
men and  others  as  freight,  along  the  railroads  and  principal 
thoroughfjxres,  it  will  thus  deprive  the  Department  of  the 
principal,  or,  at  least,  of  a  very  large  part  of  the  revenue 
derived  from  the  postage  on  such  matter,  and  would  relieve 
the  readers  of  papers  and  periodicals,  who  happen  to  be  for- 
tunate in  living  on  these  great  thoroughfares,  and  who,  on 
that  account,  enjoy  special  advantages  in  obtaining  the  ear- 
liest news,  from  the  payment  of  that  class  of  postage  ;  while 
that  class  of  readers  not  residins;  on  those  thorouo-hfares 
and  who,  from  that  cause  encounter  greater  delays  and  dif- 
ficulties in  getting  news,  are  compelled  from  the  necessity  of 
the  case,  to  pay  postage  on  such  papers  and  periodicals. 
This  would  be  to  compel  one  class  of  citizens  to  contribute 
newspaper  and  periodical  postage  lor  the  support  of  the 
mail  service,  and  to  exempt  another,  and  more  favored  class, 
from  that  burden.  And  it  is  no  just  answer  to  this,  to  say 
they  all  have  the  same  privilege  of  employing  expressmen. 
This  may  be  theoretically,  but  is  not  practically  true. 

It  is  believed  to  be  true,  however,  that  these  complaints  come 
from  the  publishers  and  expressmen,  and  not  so  much,  if  at 
all,  from  the  readers  of  papers  and  periodicals.  And  it  is  a 
sufficient  answer  to  them,  that  class  legislation  is  contrary  to 
the  theory  of  our  Government,  and  in  violation  of  the 
cherished  principles  of  equality  and  justice  on  which  our 
institutions  are  founded. 

On  this  subject,  justice  requires  it  to  be  said  that  the 
legislation  of  the  United  States,  in  relation  to  postage 
on  newspapers  and  periodicals,  cannot  be  accounted  for 
on  any  principle  of  reason  or  fairness.  But  it  may  be 
accounted  for  by  the  vast  influence  of  those  publications 
over  the  popular  mind,  and  especially  over  elections.  . 
It  is  easily  understood  how  a  man  might  propitiate 
their  favor  by  promising  exemptions  and  gratuities  to 
them,  and  how  another  might  fail  to  obtain  that  favor,  who 
Avould  steadfastly  adhere  to  just  and  sound  principles,  and 
refuse  to  purchase  popuittr  favor,  at  the  expense  of  principle 
and  of  treasure  which  belongs  to  others. 

Our  legislation  on  this  subject  is  a  marked  improvement 
on  that  of  the  old  Government ;  and  when  the  rates  of  post- 
age on  newspapers  and  periodicals  shall  be  made  to  approxi- 
mate more  nearly  to  an  equitable  proportion  with  the  postage 
on  letters  and  sealed  packages,  it  will  be   more  in  harmony 


32 

with  reason  and  fairness,  and  less  obnoxious  to  the  charge  of 
chxss  and  partial  legislation  than  at  present. 

The  Government  has  been  vested  with  certain  functions 
which  it  was  believed  could  be  discharged  with  greater  ben- 
efit to  the  public  by  it  than  b}^  private  enterprise. 

Among  these  was  the  establishment  and  management  of 
our  system  of  postal  communication,  which  is  so  necessary 
in  conducting  the  civil  administration  of  the  Government, 
and  its  military  and  naval  affairs,  and  of  so  incalculable  im- 
portance to  the  public  as  a  means  of  conveying  intelligence. 
Our  theory  is  that  the  Government  must  provide  the  ma- 
chinery of  this  Department  and  conduct  its  operations,  but 
at  the  expense  of  those  who  make  use  of  its  facilities.  That 
is,  that  this  Department  shall  be  self-sustaining.  To  make  it 
so,  and  to  make  its  revenues  secure,  and  their  accrual  steady 
and  reliable,  we  declare  letters,  sealed  packages,  newspapers^ 
periodicals,  pamphlets,  &c.,  to  be  mailable  matter,  and  make 
their  transmission  along  the  post-roads  otherwise  than 
throuirh  the  mails  unlawful.  The  Government  having  been 
charged  with  the  heavy  expense  of  affording  postal  facili- 
ties to  the  country,  is  fully  justified  by  reason  and  necessity 
in  adopting  this  means  of  making  itself  the  exclusive  carrier 
of  certain  classes  of  matter  at  fixed  and  reasonable  rates  of 
compensation,  to  reimburse  that  expense.  And  if  the  Gov- 
ernment should  be  required  to  carry  the  newspaper  and 
periodical  mail  in  the  sparsely  settled  portions  of  the  coun- 
try, where  the  matter  to  be  carried  is  too  limited  to  justify 
express  or  other  private  companies  in  doing  it,  and  where  it 
can  only  be  done  by  the  Department  at  a  loss  of  its  re- 
venues, and  if,  at  the  same  time,  it  shall  allow  this 
class  of  mail  matter  to  be  carried  by  express  or  other 
private  companies  along  the  railroads  and  other  great 
thoroughfares,  where  its  amount  would  increase  the  revenues 
of  the  Department,  it  is  difficult  to  understand  why  we  shall 
not  also  allow  the  express  and  other  companies  to  carry  the 
letter  mail  on  the  railroads  and  other  great  thorouglifares, 
where  it  is  profitable,  and  allow  the  Government  to  be  the 
exclusive  carrier  of  all  classes  of  matter  on  such  routes  only 
as  pass  through  sparsely  settled  portions  of  the  country 
v/hich  afford  but  little  revenue. 

To  do  this  would  end  in  breaking  down  the  Department, 
or  in  keeping  it  in  operation  at  the  expense  of  the  general 
Treasury.  The  policy  of  allowing  mail  matter  to  be  carried 
as  freight,  wherever  it  may  be  profitable  to  private  carriers, 


33 

creates  rivals  who  are  invited  by  their  interests  to  contend 
with  the  Department  for  its  revenues  on  all  the  most  im- 
portant lines  of  postal  communication  ;  those  which  are  most 
expensive  to  the  Department  and  most  difficult  to  control- 
Such  a  policy  would  be  both  unwise  and  disastrous,  and  I 
cannot  too  strongly  recommend  the  continuance  of  the  policy 
of  refusing  to  allow  newspapers  and  periodicals  to  be  carried 
over  the  post-roads  as  freight,  and  of  requiring  the  payment 
of  postage  on  them  as  on  all  other  mail  matter. 

Appended  to  this  report,  in  addition  to  the  other  exhibits, 
will  be  found  tabular  statement,  marked  G,  which  shoAvs  the 
length  of  mail  routes,  the  modes  of  transportation  and  the 
annual  cost  of  transporting  the  mails  in  the  eleven  States 
which  now  compose  the  Confederate  States,  for  the  fiscal 
year  ending  June  3()th,  1860. 

Table  H,  which  exhibits  the  number  of  mail  routes,  ma.il 
contractors,  route  agents,  and  mail  messengers  for  the  same 
period. 

Table  I,  which  exhibits  the  railroad  service  for  the  same 
period,  showing  the  length  of  routes,  distances  in  each 
State,  number  of  trips,  annual  pay  in  each  State,  annual 
cost  per  mile  on  each  route,  annual  cost  of  route  agencies. 
annual  cost  of  mail  messenger  service,  total  cost  on  each 
route,  total  annual  cost  per  mile,  and  total  aggregate  cost  per 
mile  in  each  State. 

And  table  J,  which  exhibits  the  steamboat  service  for  the 
same  period,  showing  the  number  of  routes,  termini,  length, 
distance  in  each  State,  number  of  trips  per  week,  and  annual 
pay  in  each  State. 

I  have  the  honor  to  be,  with  great  respect,  your  obedient 
servant, 

JOHN  H.  REAGAN, 

Postmaster  General. 
To  the  PRESIDE^T. 


(A.) 

BY    THE    POSTMASTER    GF.NERAL    OF    THE    CONFEDERATE    STATES, 

A  PROCLAMATION. 

Whereas,  By  the  provisions  of  an  act,  approved  March 
15tli,  1861,  and  amended  by  the  first  section  of  an  act  ap- 
proved May  9th,  1861,  the  Postmaster  General  of  the  Con- 
federate States  '^^  is  authorized,  on  and  after  a  day  to  be 
named  by  him  for  that  purpose,  to  take  the  entire  charge 
and  direction  of  the  postal  service  in  the  Confederate 
States,"  and  all  conveyance  of  mails  within  their  limits, 
from  and  after  such  day,  except  by  authority  of  the  Post- 
master General  thereof,  is  thereby  prohibited  : 

And  whereas,  the  Postmaster  General  of  the  Confederate 
States  of  America  did,  by  a  proclamation  issued  at  Mont- 
gomery, Alabama,  on  the  13th  day  of  May,  1861,  notify  all 
persons  connected  with  the  Post  Office  Department,  that 
from  and  after  the  first  day  of  June,  1861,  he  would  assume 
the  entire  control  and  direction  of  the  postal  service  within 
the  Confederate  States : 

And  whereas,  the  State  of  Tennessee  has,  by  virtue  of 
an  act  passed  by  the  Congress  of  the  said  Confederate  States, 
a^pprovcd  May  17,  1861,  and  the  adoption  and  ratification  of 
the  Provisional  Constitution  of  the  said  States  by  the  pro- 
perly and  legally  constituted  authorities  of  said  State  of 
Tennessee,  become  a  member  of  the  said  Confederate  States 
of  America: 

Now,  therefore,  I  hereby  direct  all  Postmasters,  Route 
Agents  and  Special  Agents  within  the  State  of  Tennessee,  and 
now  acting  under  the  authority  and  direction  of  the  Postmas- 
ter General  of  the  United  States,  to  continue  in  the  discharge 
of  their  respective  duties  under  the  authority  vested  in  me 
by  the  Congress  of  the  Confederate  States,  in  strict  con- 
formity with  such  existing  laws  and  regulations  as  are  not 
inconsistent  with  the  laws  and  Constitution  of  the  Confede- 


35 

(  A. — Continued. ) 

rate  States  of  America,  and  such  further  instructions  as  may 
hereafter  be  issued  by  my  direction  :  And  the  said  Postmas- 
ters, Route  Agents  and  Special  Agents  are  also  required  to 
forward  to  this  Department,  without  delay,  their  names, 
with  the  names  of  the  offices  of  which  they  are  Postmasters-, 
(giving  the  State  and  County,)  to  be  directed  to  the  '^  Chief 
of  the  Appointment  Bureau,  Post  Office  Department,  Rich- 
mond, Virginia,"  in  order  that  new  commissions  may  be 
issued  under  the  authority  of  this  Government :  And  all 
Postmasters  are  hereby  required  to  render  to  the  Post  Office 
Department  at  Washington,  D.  C,  their  final  accounts  and 
their  vouchers  for  postal  receipts  and  expenditures,  up  to  the 
8th  day  of  June,  taking  care  to  forward  with  said  accounts  all 
postage  stamps  and  stamped  envelopes,"  remaining  on  hand, 
belonging  to  the  Post  Office  Department  of  the  United- 
States,  in  order  that  they  may  receive  the  proper  credits 
therefor  in  the  adjustment  of  their  accounts  ;  and  they  are 
further  required  to  retain  in  their  possession,  to  meet  the 
orders  of  the  Postmaster  General  of  the  United  States,  for 
the  payment  of  mail  service  within  the  Confederate  States, 
all  revenue  which  shall  have  accrued  from  the  postal  service 
prior  to  the  said  8th  day  of  June  last. 

All  Contractors,  Mail  Messengers,  and  Special  Contractors 
for  conveying  the  mails  within  the  State  of  Tennessee,  un- 
der existing  contracts  with  the  Government  of  the  United 
States,  are  hereby  authorized  to  continue  to  perform  such 
service  under  my  direction,  from  and  after  the  day  last  above 
named,  subject  to  such  modifications  and  changes  as  may  be 
found  necessary,  under  the  powers  vested  in  the  Postmaster 
General  by  the  terms  of  said  contracts  and  the  provisions  of 
the  second  section  of  an  act  approved  May  9th,  1861,  con- 
formable thereto :  And  the  said  Contractors,  Special  Con- 
tractors, and  Mail  Messengers,  are  required  to  forward, 
without  delay,  the  number  of  their  route  or  routes,  the  na- 
ture of  the  service  thereon,  the  schedules  of  arrivals  and 
departures,  the  names  of  the  offices  supplied,  and  the  amount 
of  annual  compensation  for  present  service,  together  with 
their  address,  directed  to  the  "  Chief  of  the  Contract  Bu- 
reau, Post  Office  Department,  Richmond,  Virginia." 

Until  a  postal  treaty  shall  be  made  with  the  Government 
of  the  United  States  for  the  exchange  of  mails  between  that- 
Government  and  the  Government  of  this  Confederacy,  Post- 


36 

(  A. — Continctl. ) 

masters  will  not  be  authorized  to  collect  United  States  post- 
age on  mail  matter  sent  to  or  received  from  those  States  ; 
and  until  supplies  of  postage  stamps  and  stamped  en- 
velopes are  procured  for  the  pre-paymcnt  of  postage  within 
the  Confederate  States,  all  postages  must  be  paid  in  money, 
under  the  provisions  of  the  first  section  of  an  act  approved 
March  1st,  1861. 

Given  und:'r  my  hand  and  seal  of  the  Post  Office  Depart- 
'^-^     ment  of  the  Confederate    States  of   America,  at 

\  h.    s.  [  Richmond,  Virginia,  the  3rd  day  of  July,  in  the 

^  v^v^  ^  year  1861. 

JOHN  II.  REAGAN, 

Postmaster  General. 


NEW  POSTAGE  ACTS. 


NOTICE  TO  THE  PUBLIC  AND  INSTRUCTIONS  TO  POSTMASTERS. 

The  following  laws  have  been  enacted  by  the  Congress  of 
the  Confederate  States  of  America  : 

Letter    Postage. 

*^  AN  ACT  to  prescribe  the  Rates  of  Postage  in  the  Con- 
federate States  of  America,  and  for  other  purposes. 

^^  The  Congress  of  the  Confederate  States  of  America  do  enact y 
That  from  and  after  such  period  as  the  Postmaster  General 
may  by  proclamation  announce,  there  shall  be  charged  the 
following  rates  of  postage,  to  wit :  For  every  single  sealed 
letter,  and  for  every  letter  in  manuscript  or  paper  of  any 
kind,  upon  wdiich  information  shall  be  asked  for  or  commu- 
nicated in  waiting  or  by  marks  or  signs,  conveyed  in  the 


37 

(  A. — Continued. ) 

mail  for  any  distance  between  places  witliin  the  Confederate 
States  of  America,  not  exceeding  five  hundred  miles,  five 
cents ;  and  for  any  distance  exceeding  five  hundred  miles, 
double  that  rate  ;  and  every  letter  or  parcel  not  exceeding 
half  an  ounce  in  Aveio:ht  sball  be  deemed  a  sino;le  letter,  and 
every  additional  weight  of  half  an  ounce,  or  additional 
weight  of  less  than  half  an  ounce,  shall  be  charged  with  ad- 
ditional single  postage  ;  a?id  all  packages  containing  other  than 
printed  or  written  matter — and  money  packages  are  inclu§td  in 
this  class — shall  he  rated  by  weight  as  letters  are  rated,  and  shall 
be  charged  the  rates  of  postage  on  letters ;  and  all  drop  let- 
ters, or  letters  placed  in  any  post  office  not  for  transmission, 
but  for  delivery  only,  shall  be  charged  with  postage  at  the 
rate  of  two  cents  each ;  and  in  all  the  foregoing  cases  the 
postage  must  be  prepaid  by  stamps ;  and  all  letters  which 
shall  hereafter  be  advertised  as  remaining  over  or  uncalled 
for  in  any  post  office,  shall  be  charged  with  two  cents  each 
in  addition  to  the  regular  postage,  both  to  be  accounted  for 
as  other  postages  of  this  Confederacy." 

Postage  on  Newspapers,  Pamphlets,  and  other  printed  matter,  in- 
eluding  Books. 

"And  be  it  further  enacted,  That  all  newspapers  pub- 
lished within  the  Confederate  States,  not  exceeding  three 
ounces  in  weight,  and  sent  from  the  office  of  publication  to 
actual  and  bona  fide  subscribers  within  the  Confederate 
States,  shall  be  charged  with  postage  as  follows,  viz  :  The 
postage  on  the  regular  numbers  of  a  newspaper  published 
w^eekly,  shall  be  ten  cents  per  quarter;  papers  published 
semi-weekly,  double  that  amount;  papers  published  thrice 
a  week,  treble  that  amount ;  papers  published  six  times  a 
week,  six  times  that  amount,  and  papers  published  daily, 
seven  times  that  amount.  And  on  newspapers  weighing 
more  than  three  ounces,  there  shall  be  charged  on  each  ad- 
ditional ounce  in  addition  to  the  foregoing  rates,  on  those 
published  once  a  week,  five  cents  per  ounce,  or  fraction  of 
an  ounce,  per  quarter  ;  on  those  published  twice  a  week, 
ten  cents  per  ounce  per  quarter  ;  on  those  published  three 
times  a  week,  fifteen  cents  per  ounce  per  quarter ;  on  those 
published  six  times  a  week,  thirty  cents  per  ounce  per 
quarter ;  and  on  those  published  daily,  thirty-five  cents  per- 
ounce  per  quarter. 


3d 

(  A. — Continued.  ) 

"  And  periodicals  published  oftener  than  bi-monthly  shall 
be  charged  as  newspapers. 

"  And  other  periodicals,  sent  from  tlie  office  of  publication 
to  actual  and  bona  fide  subscribers,  shall  be  charged  with 
postage  as  follows,  \\z  :  The  postage  on  the  regular  numbers 
of  a  periodical,  published  Avithin  the  Confederate  States,  not 
exceeding  one  and  a  half  ounces  in  weight,  and  published 
monthy,  shall  be  tAvo  and  a  half  cents  per  quarter ;  and  for 
ever}^rdditional  ounce,  or  fraction  of  an  ounce,  two  and  a 
half  cents  additional ;  if  published  semi-monthly,  double 
that  amount.  And  periodicals  published  quarterly  or  bi- 
monthly, shall  be  charged  two  cents  an  ounce  ;  and  regular 
subscribers  to  newspapers  and  periodicals  shall  be  required  to 
pay  one  quarter's  postage  thereon  in  advance,  at  the  office  of 
delivery,  unless  paid  at  the  office  where  published. 

**  And  there  shall  be  charged  upon  every  other  newspaper, 
and  each  circular  not  sealed,  hand-bill,  engraving,  pamphlet, 
periodical  and  magazine,  which  shall  be  unconnected  with 
any  manuscript  or  written  matter,  and  not  exceeding  three 
ounces  in  weight,  and  published  within  the  Confederate 
States,  two  cents ;  and  for  each  additional  ounce,  or  fraction 
of  an  ounce,  two  cents  additional ;  and  in  all  cases  the  pos- 
tage shall  be  pre-paid  by  stamps  or  otherwise,  as  the  Post- 
master General  shall  direct. 

**  And  books,  bound  or  unbound,  not  weighing  over  four 
pounds,  shall  be  deemed  mailable  matter,  and  shall  be  charged 
with  postage,  to  be  prepaid  by  stamps  or  otherwise,  as  the 
Postmaster  General  shall  direct,  at  two  cents  an  ounce  for 
any  distance. 

"  And  upon  all  newspapers,  periodicals  and  books,  as 
aforesaid,  published  beyond  the  limits  of  the  Confederate 
States,  there  shall  be  charged  postage  at  double  the  forego- 
ing specified  rates. 

"  The  publishers  of  newspapers  or  periodicals  Avithin  the 
Confederate  States,  may  send  and  receive  to  and  from  each 
other,  from  their  respective  offices  of  publication,  one  copy 
of  each  publication,  free  of  postage. 

**  All  newspapers,  unsealed  circulars,  or  other  unsealed 
printed  transient  matter,  placed  in  any  post  office,  not  for 
transmission  but  for  delivery  only,  shall  be  charged  postage 
at  the  rate  of  one  cent  each." 


39 

(  A. — Continued. ) 

Franking    Privilege. 

"  And  be  it  further  enacted,  That  from  and  after  the  day 
when  this  act  goes  into  effect  the  franking  privilege  shall  be 
abolished :  Provided,  That  the  Postmaster  General  and  his 
chief  clerk,  the  Chief  of  the  Contract,  Appointment  and 
Finance  Bureaus,  and  the  Auditor  of  the  Treasury  for  the 
Post  Office  Department,  shall  be  and  they  are  hereby  author- 
ized to  transmit  through  the  mail,  free  of  postage,  any  let- 
ters, packages,  or  other  matters  relating  exclusively  to  their 
official  duties  or  to  the  business  of  the  Post  Office  Depart- 
ment ;  but  they  shall,  in  every  such  case,  indorse  on  the 
back  of  the  letter  or  package  to  be  sent  free  of  postage,  over 
their  own  signature,  the  words  '^  Official  Business."  And 
for  any  such  indorsement  falsely  made,  the  person  so  offend- 
ing shall  forfeit  and  pay  three  hundred  dollars.  And  pro- 
vided further,  The  several  deputy  postmasters  throughout 
the  Confederate  States  shall  be  and  hereby  are  authorized  to 
send  through  the  mail,  free  of  postage,  all  letters  and  pack- 
ages which  it  may  be  their  duty  or  they  may  have  occasion 
to  transmit  to  any  person  or  place,  and  which  shall  relate 
exclusively  to  the  business  of  their  respective  offices  or  to 
the  business  of  the  Post  Office  Department ;  but  in  every 
such  case  the  deputy  postmaster  sending  any  such  letter  or 
package  shall  indorse  thereon,  over  his  own  signature,  the 
words  '^  Post  Office  Business."  And  for  any  and  every  such 
indorsement  falsely  made,  the  person  making  the  same  shall 
forfeit  and  pay  three  hundred  dollars." 

Payment  of  Postage  in  Money  until  Postage  Stamps  and 
Stamped  Envelopes  are  pi'ovided. 

Section  1.  The  Congress  of  the  Confederate  States  of  Amer- 
ica do  enact.  That  until  postage  stamps  and  stamped  envel- 
opes can  be  procured  and  distributed,  the  Postmaster  Gene- 
ral may  order  the  postage  of  the  Confederacy  to  be  pre-pai4 
in  money,  under  such  rules  and  regulations  as  he  may 
adopt." 

Repeal  of  the  Letter  Registration  System. 

"  And  he  it  further  enacted.  That  the  third  section  of  an 
act  entitled  '  An  act  further  to  amend  an  act  entitled  '  An 
act  to  reduce  and  modify  the  rates  of  postage  in  the  United 


40 

(A. — Continued. ) 

States,  and  for  other  purposes,  passed  March  third,  eighteen 
hundred  and  fifty-one,'  approved  March  3d,  1855,  ^vhereby 
the  letter  registration  S3^stem  was  estahli.slied,  be  and  is 
hereby  repealed  from  and  after  the  day  when  this  act  goes 
into  effect." 

Conveyance  of  Mail  Matter  by  "  Express  and  other  Chartered 
Companies  y 

"  Sec.  5.  That  it  shall  be  lawful  for  the  Postmaster  Gene- 
ral to  allow  express  and  other  chartered  companies  to  carry 
letters  and  all  mail  matter  of  every  description,  whether  the 
same  be  enclosed  in  stamped  envelopes  or  pre-paid  by  stamps 
or  money ;  but  if  the  same  be  pre-paid  in  money,  the  money 
shall  be  paid  to  some  postmaster,  who  shall  stamp  the  same 
paid,  and  shall  account  to  the  Post  Office  Department  for  the 
same,  in  the  same  manner  as  for  letters  sent  by  the  mail ; 
and  if  pre-paid  b}^  stamps,  then  the  express  or  other  com- 
pany receiving  sucli  letters  for  deliver}^  shall  obliterate  such 
stamps,  under  the  penalty  of  five  hundred  dollars  for  each 
failure,  to  be  recovered  by  action  of  debt  in  any  court  hav- 
ing jurisdiction  thereof,  in  the  name  of  the  Postmaster 
General,  for  the  use  of  the  Confederate  States ;  but  if  said 
letters  or  mail  matter  shall  be  received  by  such  express  or 
other  company,  not  for  delivery,  but  to  be  mailed,  then  the 
matter  so  carried  shall  be  pre-paid  at  the  same  rate  that  the 
existing  law  requires  it  to  be  paid  from  the  point  where  it 
may  be  received  by  such  company  to  the  point  of  its  desti- 
nation, and  the  postmaster,  where  such  company  may  mail 
the  same,  shall  deface  the  stamps  upon  the  same. 

**  Sec.  6.  Be  it  further  enacted.  That  agents  of  any  com- 
pany who  may  carry  letters  under  the  provisions  of  this  act, 
shall  be  required  to  take  an  oath  that  he  will  faithfully  com- 
ply with  the  law  of  the  Confederate  States  relating  to  the 
carrying  of  letters  or  other  mail  matter,  and  obliterating 
postage  stamps,  which  oath  may  be  administered  by  any 
justice  of  the  peace,  and  shall  be  in  writing,  and  signed  by 
such  agent  or  messenger,  and  filed  in  the  Post  Office  De- 
partment. 

"Approved,  March  15th,  1861." 


41 

(  A. — Continued.  ) 

"  AN  ACT  to  continue  in  force  certain  laws  of  the  United 

States  of  America. 

"  Be  it  enacted  by  the  Confederate  States  of  America  in  Con- 
gress assembled,  That  all  the  laws  of  the  United  States  of 
America,  in  force  and  in  use  in  the  Confederate  States  of 
America  on  the  first  day  of  November  last,  and  not  incon- 
sistent with  the  Constitution  of  the  Confederate  States,  be 
and  the  same  are  hereby  continued  in  force  until  altered  or 
repealed  by  the  Congress. 

"  Adopted  February  9th,  1861.'' 

Postmasters'  returns  must  be  made  to  close  on  the  31st 
March,  the  30th  June,  the  3l)th  September,  and  the  31st 
December,  in  each  year;  and  the  return  for  the  fractional 
part  of  the  last  quarter,  which  ended  June  3Uth  ult.,  must 
be  promptly  rendered  to  the  Chief  of  the  Finance  Bureau, 
Post  Office  Department,  Richmond,  Virginia,  in  the  form 
and  manner  prescribed  by  existing  laws  and  regulations. 

Postmasters  are  instructed  to  retain  in  their  possession, 
subject  to  the  further  orders  of  this  Department,  for  the 
benefit  of  the  Confederate  States,  all  mail  bags,  locks  and 
keys,  marking  and  rating  stamps,  blanks  for  quarterly  re- 
turns of  postmasters,  and  all  other  property,  belonging  to  or 
connected  with  the  postal  service,  and  to  return  forthwith  to 
the  Chief  of  the  Appointment  Bureau  of  this  Department, 
a  full  inventory  of  the  same. 

They  will  also  report  to  the  Chief  of  the  Finance  Bureau 
of  this  Department,  their  journal  or  ledger  account  with  the 
United  States,  for  the  service  of  the  Post  Office  Department,  up 
to  and  including  the  ^th  day  of  June  xdt.,  in  accordance  with 
the  general  regulations  embraced  in  chapter  24  of  the  edi- 
tion of  Laws  and  Regulations  of  the  Post  Office  Department, 
issued  May  15th,  1859,  page  106,  exhibiting  the  final  bal- 
ance in  their  possession. 


42 


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(C.) 

CONFEDERATE  STATES  OF  AMERICA, 

General  Post  Office  Department, 
Richmond,  Va.,  Nov.  22,  1861. 

Hon.  John  II.   Reagan, 

Postmaster  General : 

Sir  :  I  have  the  honor  herewith  to  submit  a  detailed  state- 
ment of  the  receipts  and  expenditures  of  the  Post  Office  De- 
partment for  the  fractional  quarter  ending  SOth  June,  1861, 
so  far  as  the  same  can  be  exliibited  from  the  books  and  files 
of  this  office. 

It  is  proper  to  premise  that,  owing  to  the  limited  period 
over  which  the  transactions  noticed  in  the  annexed  state- 
ment extend,  (only  one  month,)  they  do  not  afford  a  true 
criterion  of  the  regular  quarterly  business  of  the  office. 
Other  causes  also  have  operated  not  only  to  prevent  the  re- 
turns of  postmasters  from  being  forwarded  to  the  Depart- 
ment, but  have  materially  lessened  the  receipts  of  the  various 
offices.  The  unsettled  condition  of  the  country,  the  sudden 
change  on  the  1st  of  June  of  the  postal  service,  the  increased 
rates  of  postage,  the  want  of  stamps  for  the  pre-payment  of 
postages,  and  the  disappearance  of  specie  from  circulation, 
have,  to  a  great  extent,  combined  to  materially  diminish  the 
revenue  from  postages. 

The  principal  difficulty,  how^ever,  in  ascertaining  the  pos- 
tal receipts  for  the  period  mentioned,  grows  out  of  the  fact 
that  a  large  number  of  postmasters  have  made  no  returns  of 
their  accounts  for  June,  but  have  embraced  the  items  of  these 
accounts  in  their  returns  for  the  quarter  ending  SDth  Sep- 
tember. 

There  are  8,946  post  offices  within  the  Confederate  States, 
and  from  these  only  about  one-half,  or  4,922  postmasters 
have  made  returns  for  June,  leaving  4,024,  who,  it  is  pre- 
sumed, have  deferred  making  their  returns  until  they  send 
in  their  accounts-current  for  the  quarter   ending   3()th  Sep- 


44 

(  C. — Continued. ) 

teraber.  These  last  mentioned  accounts  began  to  arrive 
about  the  middle  of  October,  and  have  been  accumulating 
very  rapidly  up  to  this  date. 

Of  the  accounts  for  the  fractional  quarter  ending  30th 
June,  and  which  were  received  before  the  end  of  September, 
4,701)  have  been  examined  and  corrected,  and  of  those  which 
have  been  received  since  the  30th  of  September,  2,771  have 
been  examined  and  corrected,  leaving  1,275  to  be  examined 
before  the  end  of  the  present  quarter  terminating  31st  De- 
cember, by  which  time  it  is  probable  that  all  the  postmasters 
will  have  sent  in  their  accounts-current,  from  which  a  much 
more  exteiided  report  of  the  revenue  arising  from  postal  re- 
ceipts can  be  made,  and  from  which  more  reliable  estimates 
may  be  made  of  the  receipts  from  this  branch  of  the  service 
for  the  fiscal  year  ending  June  30th,  1862, 

From  the  annexed  tabular  statement  it  will  be  seen  that 
the  gross  revenue  arising  from  postal  receipts  for  the  frac- 
tional quarter  ending  30th  June,  being  the  proceeds,  however, 
of  only  4,922  offices,  was  $92,384  67.  The  expenses  for 
the  same  period,  exclusive  of  amounts  due  for  transportation 
of  mails,  and  for  payments  to  route  and  local  agents,  and 
mail  messengers,  was  $49,040  60.  The  amount  expended 
and  due  for  transportation  of  mails,  and  payments  to  route 
and  local  agents  and  mail  messengers,  and  to  contractors  for 
transportation,  was  $151,897  37,  making  a  total  of  expen- 
ditures amounting  to  $200,939  97,  and  showing  an  excess 
of  expenditures  over  the  receipts  of  the  office  of  $108,553 
30. 


45 

(  C. — Continued. ) 

The  receipts  of  the  various  offices   in  the  several  States 
were  as  follows : 

LETTERS,  NEWSPAPERS,  ETC. 

Virginia $21,026   13  $2,1  i6   21 

North  Carolina 5,768  34  1,263  57 

South  Carolina 6,556  21  1^345  32 

Tennessee 2,102  50  301   91 

Arkansas 2,238  82  266  34 

Texas 3,835  43  719   72 

Georgia 11,250  80  1,972  76 

Alabama 8,166   63  1,574  38 

Florida 2,771   96  170   10 

Mississippi 7,524  46  852  85 

Louisiana 8,217   10  1,390  00 

$79,458  38         $11,973   16 

Add  for  excess  of 
emoluments 953   13 

For  ship,  steamboat 
and  way  letters 116   66 

The  expense  of  collecting  the  foregoing  amount  in  the 
separate  States  was  as  follows  : 

COMPENSATION  OF       INCIDENTAL 

POSTMASTERS,  EXPENSES. 

Virginia $6,906   97  $1,755  82 

North  Carolina 3,475  82  317  88 

South  Carolina 3,015   12  701   38 

Tennessee 1,059   54  500  02 

Arkansas 1,550  89  51   79 

Texas 2,451   50  304  27 

Georgia 5,614  52  1,643  23 

Alabama 3,952  75  1,368   18 

Florida 820   12  13  93 

Mississippi 4,100  21  59  09 

Louisiana 2,099  76  2,250   13 


$35,047  20           $8,965  72 
35,047  20 
Balance  due  Post- 
master   in    Arkansas                                       176  32 
Total  expenses $44,189  24 


46 

(  C. — Continued. ) 

The  following  tabular  statement  exhibits  in  a  condensed 
form  the  total  of  expenditures  and  receipts  for  the  fractional 
quarter  ending  June  3(1,  1861. 

Statement  of  the  Revenue  and  Expenditures  of  the  Post 
Office  Department  of  the  Confederate  States,  and  also  the 
Amount  Due  Contractors  and  Postmasters,  as  Exhibited 
by  the  books  in  the  Office  of  the  Auditor  of  the  Treasury 
for  the  Post  Office  Department  for  June,  1861,  viz  : 

EXPENDITURES. 

For    transportation  of    inland 

mails,  including  payments  to 

route  agents,  local  agents  and 

mail  messengers $115,152  26 

Amount    due    contractors    for 

transportation  of  the   mails 

yet  to  be  settled 36,745   11 

Compensation  of  postmasters.  .  35,U47  20 
Compensation  of  clerks  in  post 

offices 8,117   10 

Ship,  steamboat  and  way  letters  116   66 

Advertising 1,173   91 

Mail  bags 175 

Blanks 3,000  00 

Mail    locks,    keys    and    office 

stamps 73   67 

Mail  depredations   and  special 

ao-ents 472  73 

o 

Miscellaneous  payments 86  I    26 

Balance  due  postmaster 176  32 

$200,937  97 

RECEIPTS. 

From    letter  postage 79,458  38 

"       postage   on   newspapers 
andpamphiets 11,973   16 

From   emoluments 953   13 

92,384  67 


Excess  of  expenditures  $108,553  30 


47 


(  C. — Continued. ) 

Adopting  the  following  table  as  a  basis  for  estimating  the 
probable  receipts  from  the  same  sources  for  the  year  ending 
June  30,  1862,  and  comparing  that  estimate  with  the  receipts 
from  all  the  Post  Offices  now  in  the  Confederate  States,  for 
the  fiscal  year  ending  SOth  June,  1860,  the  following  is  the 
result: 

Total  receipts  of  all  the  offices  in  1860 $1,517,536  00 

Total  receipts  of  all  the  offices  in  1861 1,091,012  00 

Showing  a  deficiency  for  1861  of $426,524  00 


Amount  of  receipts  for  postage 
of  the  United  States  for  the 
year  1860. 

Estimates  of  a  year's  receipts  for 
postage  for  the   C.  States  for 
the  year  ending  June  30, 1862. 

STATES. 

AMOUNT. 

STATES. 

AMOUNT. 

Virginia 

$275,269  00 
97,812  00 
113,675  00 
183,120  00 
28,319  00 
148,471  00 
116,018  00 
128,177  00 
218,323  00 

Virginia ... 

$277,704  00 
84,372  00 
92,412  00 

159,024  00 
31,292  00 

110,880  00 

100,512  00 
54,648  00 

115,284  00 

North  Carolina. .  . 
Soutli  Carolina..  .. 
Georgia 

North  Carolina   . . . 
South  Carolina 

Florida 

Florida 

Alabama 

Mississippi 

Texas 

Louisiana 

Mississippi 

Texas 

Louisiana 

Tennessee 

155,732  00 

Tennessee .... 

28,836  00 

30,048  00 

$1,091,012  00 

Arkansas  ...    

52,020  00 
$1,517,536  00 

Arkansas 

Total 

Total   

As  the  foregoing  table,  however,  is  based  upon  the  re- 
turns from  only  4,922  Post  Offices,  the  receipts  must  neces- 
sarily be  increased  by  the  returns  from  the  remaining  4,024 
offices  ;  but  these  last  mentioned  are  generally  small  offices, 
scattered  throughout  the  interior,  from  many  of  which  the 
receipts  will  be  very  inconsiderable. 

It  will  be  seen  by  referring  to  the  foregoing  comparative 
statement,  that  the  prevailing  hostilities  have  affected  the 
current  business  of  the  Post  Office  Department,  in  common 
with  all  other  business  of  the  country.  For  instance,  in 
the  State  of  Virginia,  where  large  bodies  of  troops  have 
been  stationed,  the  receipts  from  postages  were  diminished 
but  in  a  small  degree ;  while  in  South  Carolina,  Texas  and 
Louisiana,  the  diminution  is  very  large.     As  soon  as  the  ac- 


48 

(  C. — Continued. ) 

counts  current  for  the  quarter  ending  3()th  of  September 
shall  be  examined  and  corrected,  I  will  be  able  to  report 
more  accurately  the  data  from  "svliich  estimates  of  postal 
revenue  for  the  fiscal  year  ending  3i)th  June,  1862,  may  bo 
made. 

In  addition  to  the  amount  of  expenses  incurred  for  com- 
pensation of  Postmasters,  &c.,  as  before  stated,  the  following 
table  vrill  exhibit  the  amount  of  expenses,  paid  and  incurred, 
to   contractors    for    carrying  the    mails,  to   Route   Agents, 
Local  Agents,  Mail  Messengers  and  Special  Messengers,  for 
the  fractional  quarter  ending  30th  June,  ISGl  : 
Statement  of  expenses  paid  and  incurred  to  Contractors  for 
carrying  the  Mails,  to  Route  Agents,  Local  xVgents,  Mail 
Messengers  and  Special  Messengers  for  the  quarter  end- 
ing 3()th  June,  1861  : 

STATES.  AMOUNT  DUE.       AMOUNT    PAID. 

Alabama $16,233  22  $16,600  97 

Arkansas 10,056  88  9,766   67 

Florida 3,054  05  1 ,093  92 

Georgia 6,702  74  7,590  72 

Louisiana 20,970  09  17,268  60 

Mississippi 18,488  86  12,131    17 

North  Carolina 6,811   96  6,586   63 

South  Carolina 10,435  22  9,772  47 

Tennessee 3,689  39  2,443  31 

Texas 34,775  80  12,488  91 

Virginia 12,073  72  4,703  44 

Route  Agents 7,097   15  7,097   15 

Local  Agents 50  00  50  00 

Mail  Messengers 1,210  S6  1,210  36 

Special  Messengers 247  93  247  93 

Total $151,897  37     $115,152  26 


49 


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50 

(C. — Continued.) 

As  auxiliary  to  the  ordinary  postal  service,  an  act  of 
Congress  was  passed  May  21,  1861,  appropriating  the  sum 
of  $^30,0UU  for  compensation  of  Agents,  cost  of  materials, 
and  constructing,  and  operating  telegraph  lines,  &c. 

Of  the  above  sum  there  has  been   expended  for 

the  objects  enumerated $15,136   77 

Leaving  unexpended  to  the  credit  of  the  appro- 
priation, the  sum  of 14,863  23 

$30,000  00 


By  an  Act  of  Congress  passed  August  30,  1861,  all  post- 
masters in  the  Confederate  States,  are  required  to  account 
to  this  Bureau,  for  all  moneys  collected  by  them  for  United 
States  postages,  and  not  paid  over  at  the  time  the  Confeder- 
ate States  took  charge  of  the  postal  service. 

In  obedience  to  your  proclamation,  made  in  conformity 
with  said  act,  about  5,300  postmasters  have  sent  to  this  of- 
fice, statements  of  balances  due  to  or  from  the  United  States ; 
but  in  most  instances,  the  statements  were  so  uncertain,  that 
I  have  issued  a  circular,  addressed  to  each  postmaster,  giv- 
ing special  forms  and  instructions  for  making  out  the 
accounts  in  accordance  with  the  Act  of  Congress.  So  far 
as  an  estimate  can  be  made  from  the  very  vague  returns  sent 
in  from  the  postmasters,  it  appears  that  over  $50,000  is  now 
in  the  hands  of  those  who  have  made  returns. 

The  same  act  provides  that  all  persons  having  claims  for 
postal  services  against  the  United  States,  shall  file  the  same 
with  the  Auditor,  under  such  forms  as  the  Postmaster  Gen- 
eral may  approve. 

For  that  class  of  cases  embracing  principally  contractors, 
I  have  had  tabular  forms  printed,  with  instructions  for  mak- 
ing- out  their  claims  ;  and  these  forms,  as  well  as  those  for 
postmasters'  accounts,  are  now  being  distributed. 

The  adjustment  of  these  accounts  will  require  a  large 
amount  of  labor,  and  great  care  and  accuracy,  and  at  least 
two  clerks  will  be  necessary  for  their  examination,  recording 
and  settlement. 

It  is  proper  to  state,  in  this  connection,  that  when  the 
tjlerical  corps  was  provided  for  this   Bureau,  there  were  but 


51 

(C. — Continued.) 

seven  States  in  the  Confederacy,  and  it  was  supposed  that 
thirty  (30)  clerks  would  be  a  sufficient  number  to  assist  the 
Auditor  in  settling  the  accounts  of  the  Department.  But 
since  that  time  four  States  have  ^een  added  with  as  many 
post  offices,  and  contractors  as  were  embraced  within  the 
original  seven  States,  by  which  the  labors  of  the  clerks,  as 
well  as  the  Auditor  have  been  greatly  increased  ;  and  unless 
the  number  of  clerks  is  augmented,  the  business  of  the  Bu- 
reau will  be  greatly  retarded.  The  number  of  examiners  is 
too  small  for  the  number  of  accounts  current  now  coming  in,, 
and  m  order  to  keep  up  the  proper  system  of  checks  of  one 
division  upon  the  other,  it  will  be  necessary  to  increase  the 
number  of  pay  clerks  and  registers,  and  to  provide  for 
the  settlement  of  accounts  of  postmasters  with  the  United 
States,  by  detailing  at  least  two  clerks,  one  of  whom  can 
examine  and  register  the  accounts,  and  the  other  can  correct 
this  examination,  and  keep  the  books  which  will  be  necessa- 
ry for  the  entry  and  preservation  of  the  items  of  the 
accounts. 

I  respectfully  call  3'our  attention  to  the  labor  performed 
by  the  clerical  corps  in  this  Bureau,  as  shown  by  the  con- 
densed statements  accompanying  this  report ;  and  the  occa- 
sion seems  to  be  a  proper  one  in  whicli  to  express  my 
appreciation  of  the  zeal  and  efficiency  of  the  gentlemen  who- 
have  been  appointed  to  clerkships  in  this  Bureau. 
1  have  the  honor  to  be,  very  respectfully. 

Your  ob't  servant, 

BOLLING  BAKER, 
Auditor  of  the  Treasury  for  the  Post  Office  Departments 


52 


(C. — Continued.) 

General  Post  Office  Department, 
Auditor's  Office, 
Richmond,  Va.,  Nov.  27,  1861. 

Hon.  John  H.  Reagan,  P.  M.  General : 


biR : 


In  addition  to  my  report  of  tlie  23d  inst.,  I  herewith  trans- 
mit a  statement  from  the  report  of  the  President  of  the 
Southern  Telegraph  Company,  and  also,  the  names  of  the 
operators  employed,  the  date  of  their  appointments,  rate  of 
compensation,  amount  paid,  due,  &c.,  &c. 


LINES    CONSTRUCTED. 

DISTANCE. 

TOTAL 
DISTANCE. 

COST. 

West  Point  to  Yorktown 

1 

59 
17 
23 

19 
5 

20 
4 

70 

99 

48 
70 

217 

Ship  Point  to  Lands  End 

Fairfax  Station  to  Fairfax  C.  II.. 
Falls  Church,  Munson  Hill  and 
Chichester 

Union  Mills  to  Centreville 

T^nmfriot;  to  Afiuia  Creek         . 

$1,439  60 

*•          to  ChaT)a\vanisic 

304  35 

Staunton  to  Jackson  River 

2,021  37 

$4,365  32 

LINES  IN  PROCESS  OF  CONSTRUCTION.  | 


Jackson  River  to  Lewisburg.  .36| 

Dumfries  to  Manassas 25 1 

New  Orleans  to  Houston,  Texas. | 
Little  Rock  to  Fort  Smith,  Ark..j 
10  1-2  miles   of  insulated  wire,  3 

vehicles. 

Batteries  for  field  telegraph 


DISTANCE. 


61 


ESTIMATED 
COST. 


$4,000    00 


COST. 


4,313  50 


4,763  86 


$4,000  00    I  $13,442  68 


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87 

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99 

35 

68 

202 

Texas 

91 

53 

105 

249 

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1656 

417 

646 

5280 

Respectfully  submitted, 

B.  N.  CLEMENTS, 
Chief  of  Appointment  Bureau. 


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Montgomery  to  Columbus,  Ga 

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